Mortgage Rates Tack On A Half-Percent For The Second Time In A Week

Mortgage rates soared again Monday, tacking on a half-percent in a day for the second time in under a week.

Each half-percent adds $62 to a $200,000 home loan's monthly payment, or $744 per year.

For home buyers recently under contract, it's a gut-wrenching time to be shopping for a home loan.  Morning mortgage rates have been typically gone by early-afternoon and -- in some cases -- lenders have changed rates five times in one-day span.

The reasons for surge in rates are varied, but each is related to the idea that the economic recession may be nearing its end.

• Consumer optimism is as high as it's been all year
• Consumer spending is falling at a slower pace than in months prior
• China's factories reported an expansion in business

Each of these points bodes well for the economy and pushes Wall Street investors towards more risky investments.  As a result, "safe" investments get sold -- including mortgage-backed bonds, the basis for conforming mortgage rates.

For as long as the future of the economy remains in question, expect mortgage rates to remain volatile.  We won't get half-point rate swings or five pricings in a day every day, but both are becoming more common.

Be careful when shopping for a mortgage -- the rate you're quoted may not last long.