Real estate notebook
Published 9:00 pm Saturday, February 4, 2006
Mortgage rates around the country went up this week, with rates on 30-year mortgages climbing to their highest point since late December.
Mortgage company Freddie Mac, in its weekly nationwide survey released Thursday, reported that rates on 30-year, fixed-rate mortgages rose to 6.23 percent for the week ending Feb. 2. That was up from 6.12 percent last week and was the highest rate since the week ending Dec. 22.
Rates are rising amid investors’ concerns about inflation flaring up.
“Declines in worker productivity coupled with accelerating labor costs increase the threat of inflation down the road,” said Frank Nothaft, Freddie Mac’s chief economist. “Inflationary pressure generated by these two factors pushes long-term mortgage rates upward, which is why we have seen rates rise these last two weeks.”
Before that, rates on 30-year mortgages had been drifting downward.
Meanwhile, rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.81 percent this week, up from 5.70 percent last week.
One-year, adjustable-rate mortgages increased to 5.33 percent this week, compared with 5.20 percent last week. Rates on five-year, hybrid adjustable-rate mortgages rose to 5.87 percent this week, from 5.75 percent last week.
Rising mortgage rates also come in the wake of the Federal Reserve’s decision Tuesday to boost a key short-term interest rate to its highest point in nearly five years – an action aimed at fending off inflation.
The mortgages rates do not include add-on fees known as points. The 30-year and 15-year mortgages, along with the five-year hybrid adjustable rate mortgage, each carried a nationwide average fee of 0.5 point. One-year adjustable rate mortgages had an average fee of 0.7 point.
A year ago, 30-year mortgages averaged 5.63 percent, 15-year mortgages stood at 5.14 percent, one-year adjustable-rate mortgages were at 4.23 percent and five-year hybrid adjustable rate mortgages averaged 5.00 percent.
“Mortgage rates will surely fluctuate in the weeks and months ahead, but the trend now is for higher rates over the long run,” Nothaft said.
The Mortgage Bankers Association predicts 30-year mortgage rates will rise to about 6.4 percent by the end of this year. Some analysts, however, believe this rate could end the year closer to 7 percent – if inflation picks up. Either way, rising rates are expected to slow home sales this year.
People
Agent Barbara Stavig has been named Rookie of the Year at the Everett office of RE/MAX Northwest.
Dave Miles of Windermere is the new president of the Snohomish County Camano Board of Realtors. Karen Schweinfurth of REMAX Northwest is president elect, Beth Cooper of Beth’s Real Estate Connection is vice president of communications, Bruce McKinnon of Windermere is vice president of government affairs, Sandy Eastly of Coldwell Banker Bain is vice president of professional standards, Brenda Rumball of Century 21 North Homes is past president. Other members of the board of directors include: Dyann Arthur, Countrywide Home Loans; Mickie Barnett, Barnett &Associates, Marysville; Barb Chase, Keller Williams, Marysville; Susann Hendrickson, Windermere, Lake Stevens; Kristine Jameson-Olson, First American Title; Wayne Purser, Coldwell Banker Bain, Lynnwood; Sharon Thomas, Coldwell Banker Gary Wright Realty, Marysville; Natalee Thurston, Windermere JS, Marysville; Rich Williamson, RE/MAX Signature, Arlington; Gary Wright, Coldwell Banker Gary Wright Realty; Bob Chapman, Windermere, Lake Stevens; Paul Chrysler, John L. Scott, Woodinville; Kathi Jackson, Century 21 NH, Monroe; Pat Lord, REMAX Champions; Steve Keep, John L. Scott, Lynnwood; Rob Racz, , Everett; and Shelia Simmons, Windermere MH.
Send your real estate news to Mike Benbow, Business editor, The Herald, P.O. Box 930, Everett, WA 98206, by fax to 425-339-3435 or by e-mail to economy@heraldnet.com.
