Mortgage Rates Increase; 30-Year Rate Hits Highest Level Since September
- Jun 20, 2008
McLean, Va.–Home mortgage rates continued to rise this week and the 30-year fixed mortgage rate reached its highest level in more than eight months, according to McLean, Va.-based Freddie Mac.Freddie Mac Vice President and Chief Economist Frank Nothaft blamed inflation, The Wall Street Journal said.”Fixed-rate mortgage rates continued to climb this week to the highest point in nearly nine months following the release of May’s consumer- and producer-price indexes, both of which showed stronger levels of inflation,” Nothaft said.In the week ended Thursday, 30-year fixed mortgages averaged 6.42 percent–an increase from last week’s 6.32 percent. Last year, the 30-year mortgage rate averaged 6.69 percent.On average, the 15-year fixed rate was 6.02 percent, compared to 5.93 percent last week. A year ago, the 15-year mortgage rate averaged 6.37 percent.Adjustable-rate mortgages also increased last week. Five-year Treasury-indexed hybrid adjustable-rate mortgages rose from 5.70 percent to 5.89 percent.The increased rates had an almost immediate effect on the mortgage market: According to the Mortgage Bankers Association survey released Wednesday, the new, higher rates seem to be responsible for the recent decline in mortgage applications.