The average 30-year fixed mortgage hit a two-year high on concerns that the Federal Reserve will pull back on mortgage bond purchases.
The 30-year home rate averaged 4.51 percent, up from 4.29 percent last week — and 3.56 percent a year ago.
Rates for 15-year fixed mortgages advanced 3.53 percent, up from 3.39 percent a week ago. A year ago the rate averaged 2.86 percent.
The strengthening economy and improving job market have been fueling speculation that the Fed will taper its $85 billion monthly bond-buying program designed to keep interest rates low and provide needed liquidity to the markets.
Yesterday, the Dow and the S&P 500 closed at record highs after Fed chief Ben Bernanke suggested the central bank would keep the easy money flowing until the labor market showed further improvement.