Mortgage Rates Increases Slow Refinancing

U.S. mortgage rates for 30-year loans rose to a two-year high, increasing borrowing costs amid signs of an improving job market. This came on speculation that the Federal Reserve would soon reduce its bond purchase program after ta bullish June jobs report.

It wasn’t just the job gains that drove rates higher. Hourly wages also rose 2.2 percent over the past 12 months, the largest annual increase in nearly two years, according to Frank Nothaft, Freddie’s chief economist.

The average rate for a 30-year fixed mortgage climbed to 4.51 percent, the highest since July 2011, from 4.29 percent last week, McLean, Virginia-based Federal Home Loan Mortgage Corp (OTCBB:FMCC)...