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Mortgage rates could rise even further if the Federal Reserve decides later Wednesday to slow its $85 billion a month bond purchase program. Most economists expect the Fed will announce that it will reduce its purchases by $10 billion. The bond purchases have kept long-term interest rates low. The average fixed rate on a 30-year mortgage was 4.57 percent last week. That's near the highest level in two years. Still, rates remain low by historical standards. And most economists expect the housing recovery to withstand the increase in borrowing costs. Homebuilder confidence remained at its highest level in nearly eight years in September, according to a survey by the National Association of Home Builders. But builders are starting to worry that sales may slow in the coming months if rates keep rising, the survey found. Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to NAHB statistics.
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