Mortgage rates reverse downward trend

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Mortgage rates on 30-year fixed-rate residential loans averaged 4.39 percent this week, according to a Freddie Mac survey.

That’s up from last week’s record low of 4.17 percent, and contrary to the federal reserve’s intent for interest rates after it announced a $600 billion Treasury bond purchase program.

Yields on treasury bonds, which are closely tracked by mortgage rates, rose in spite of the quantitative easing. Traders are betting that the federal reserve will reduce the size of the buy-back as the economy continues to improve and the fed encounters international criticism.

Further analysis can be found here.