30-Year Mortgage Rates Hit 2-Year High

The average interest rate on 30-year, fixed-rate mortgages rose to 7.89% this week, the highest level in two years. The average was up from 7.70% last week, according to a weekly survey by mortgage company Freddie Mac. Rates on 15-year mortgages, a popular option for refinancing, averaged 7.45% this week, up from 7.29% last week. On one-year, adjustable-rate mortgages, lenders were asking an average initial rate of 6.09% this week, up from 5.99% the previous week. The rates do not include add-on fees known as points, which averaged about 1% of the loan amount for all three types of mortgages.