Mortgage interest rates jumped 7 basis points this week to 3.66% on average for a 30-year fixed-rate mortgage, according to Freddie Mac. Last week, the 30-year fixed averaged 3.59%.

The Federal Reserve decided during its two-day policy-making committee meeting to maintain the federal funds rate at 1/4 to 1/2 percent citing slower economic activity. Incomes have risen yet household spending has slowed.

Many of the experts, 46%, polled by Bankrate’s Rate Trend Index expect rates to fall in the next two weeks.

Rates are still historically low, yet home prices are soaring.

“Demand is starting to weaken in some areas, particularly in the West, where the median home price has risen an astonishing 38% in the past three years,” said Lawrence Yun, chief economist at the National Association of Realtors.

Nationally, the median price of an existing home was $222,700 in March, up nearly 6% from last March.

Buyers should lock in their rates if they don’t want to risk further increases.

Rates for a 15-year fixed-rate mortgage rose to 2.89% this week from 2.85% last week. A year ago this time, it averaged 2.94%, according to Freddie Mac.

Likewise, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.86% this week, up from 2.81% last week, and 2.85% a year ago this time.

Reprinted with permission from Partner Xchange