A surprise spike in mortgage rates threatens to halt a refinancing boom that has delivered strong profits for U.S. banks over the past two years, the Wall Street Journal reported today. The average rate on a 30-year mortgage rose to 4.15 percent last week, a 14-month high and up sharply from 3.59 percent in early May, according to the Mortgage Bankers Association. A separate survey released yesterday by Freddie Mac said the rate this week was at 3.98 percent, up from 3.35 percent last month. Refinancing applications last week were down 36 percent from the first week of May, before rates began climbing, according to the bankers association.
