Mortgage Rates Head Up

Mortgage rates hit their highest point in almost 4 years this week, a move that is expected to slow home sales even more.

The average rate on a 30-year fixed rate loan hit 6.53 percent, up from 6.49 percent last week.

"Rates are likely to reach 7 percent this year, and that will likely put a brake on real estate in Arizona," said Terry Turk, president of Sun America Mortgage Co.

A 50 percent rise in home values in 2005 means many buyers need low rates to afford a home.

This weeks rates were the highest since July 2002. More...