Released: October 17, 2008

Bailout pushes mortgage rates up

Source: Stephanie Armour, USA Today

A recent jump in mortgage rates could jeopardize any turn-around in the housing market as home buyers face steeper loan costs.

The average interest rate on a 30-year, fixed-rate mortgage this week hit 6.46%, up from 5.94% last week, mortgage giant Freddie Mac reported Thursday.

The roughly half-point increase is the biggest weekly jump since 1987. On a $165,000 loan, a borrower would pay $1,069 monthly, or $58 more than the payment on the same loan taken out last week. Despite the big jump, the 30-year rate is about where it was as recently as mid-August.

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