Industry NewsMortgage

Mortgage rates up as investors ditch bonds

30-year fixed-rate up 42 points from October low

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Editor's note: This story has been corrected to note that mortgage rates hit record lows during the week ending Nov. 11.Mortgage rates continue to rise as more investors gain confidence in the economy, making safe bets like Treasurys and mortgage-backed securities that fund home loans less attractive, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey."After Europe made strides in its debt situation, investors left the security of U.S. Treasury debt causing bond yields to rise and mortgage rates along with them," said Freddie Mac Chief Economist Frank Nothaft.The increase in Treasury yields also coincided with President Obama's announcement of a pact with Republican lawmakers to extend the Bush-era tax cuts for high-income taxpayers for two more years in exchange for extending federal unemployment insurance for the long-term jobless and payroll tax cuts for one year.Taken together, those moves are expected to increase the government's defi...