The average rate on the widely-followed 30-year fixed mortgage made headlines by crossing the 7% mark Monday, reaching 7.04%, as reported by Mortgage News Daily. This development follows a huge spike in rates Friday, driven by January employment report.
"The strong job market is good news for the spring buying season as higher household incomes are a necessary component, but it also means that mortgage rates are not likely to drop much further at this point," said Michael Fratantoni, chief economist at the Mortgage Bankers Association.
