Rates on U.S. home mortgages surged to the highest level in close to two years last week as the recent sell-off in the bond market after the Federal Reserve laid out a plan to wind-down its massive stimulus program drove borrowing rates higher.
The dramatic increase cut into refinancing demand, though homebuyers continued to show interest, data from an industry group showed on Wednesday.
Interest rates on fixed 30-year mortgage rates averaged 4.46 percent in the week ended June 21, up 29 basis points from the week before, the Mortgage Bankers Association said. It was the highest level since August 2011.
Rates have been rising since early May, but last week's sharp increase came after the Federal Reserve said it could pull back on its quantitative easing program by the end of the year.