Mortgage Prices Jump Ahead Of Expected Interest Rate Hike

SAN FRANCISCO (KCBS) -- Mortgage interest rates have already started jumping up ahead of next month's expected rate hike.

Both 15 and 30 year fixed mortgages have seen steady increases in the last week.

30 year fixed rate mortgages have jumped to 4.1 to 4.25 percent at many banks.

"Rates have basically jumped back to where they were through a good hunk of 2015. People are making a big deal because yes, this is a fairly sharp rise, but from even a medium term perspective, the rates are still historically low," Economist Chris Thornberg told KCBS.

Thornberg says that when you look at the whole picture, the jump doesn't mean much.

"Rates have come up, but on the other side, the affordability will be diminished only somewhat," he said.

As for the Bay Area's housing crisis, Thornberg says the rate hike won't be the fix.

"It's certainly not going to solve that part of the picture," Thornberg said.