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Point in six weeks. >> the rates went up very dramatically. they went up very quickly. >> reporter: ironically an improving economy is to blame. >> unemployment is down. the stock market is doing really well. median home prices are up. people are feeling better. they're out there buying again. so the economy does well, you will see a rising rate environment. at 3.5% on a $250,000 home with 20% down, you pay about $898. the same 30-year fixed mortgage will coáu you 954 bucks at 4%. that's $56 more a month or $672 a year. down payment, credit score and d8income determine the rate youl pay. >> b...

Again. >> if you are either in the market to buy a house or on the fence about refinancing, i would say, do not wait. >> reporter: mortgage rates are historically low but a sudden move higher, up half a percentage point in six weeks. not the rates went up very dramatically and quickly. >> reporter: ironically an improving economy is to blame. >> unemployment is down. stock market is doing really well. median home price is up, people feeling better, out there buying again. economy does well, you will see a rising rate environment. >> reporter: you will see it on your monthly payment. 3 1/2%, yo...

Actually got help. do we want to go this and do a government program, yet again, to prop up housing? why think is. now, if the banks want to sit down and, say, it is good business to take care of our good discussing, to talk with the customers, and help them, but the idea for the government to force banker to change contract, i don't think that is wise. >>neil: and the government is not forcing them to roll become the principle and i can understand that, and they are just say, all right, a lot of people do not refinance as you bring up, simply because they are underwater and they can't, they w...

Can take advantage of the currency fluctuations, they might have corporate bonds, floating bonds and floating rate loans which reset in an upward environment and let your interest rate go up. so it allows you to take advantage of a rising rate environment. what this will allow you to do, if you're in a treasury fund and treasuries are going to go down, you can't do anything. this type of fund and all the fund families have this type of fund and it gives the manager the opportunity to bump out of treasuries and into something else and take advantage of a rising rate environment. it's a more mod...

Bank account or cd or money market, something paying low interest, this is a slightly better insurance policy. >> slightly better if you hold it to maturity, that's true. >> what people at medium risk. what would do you there? >> really, there are a lot of opportunities. we keep hearing how bonds are going to be terrible in a rising rate environment. people are talking most about treasury bonds, perhaps even municipal bonds. if you go to a flexible income fund or strategic income fund, you're going to bring in additional opportunities. they could have treasuries in here, and you could have a s...