Mortgage Rates Fly Higher

The national average for 30-year fixed mortgage rates has risen from a low of 5.62% on April 14th to 6.29% as of yesterday's close.  As shown in the first chart below, similar spikes occurred in the first half of 2006 and 2007 as well.  Anyone that wants the real estate crash to come to an end soon knows that a rise in rates like this is not going to help.  And clearly the rate cuts from the Fed have done nothing to move mortgage rates lower.  The national average for 30-year fixed mortgage rates was at 6.24% when the Fed first cut the Discount Rate from 6.25% to 5.75% on August 17th last year.  Since then, the Fed Funds Rate has declined from 5.25% down to 2.00%, but mortgage rates are now up 5 bps to 6.29% over the same time period.