WASHINGTON – Rates on 30-year mortgages rose this week to the highest level in 15 months while one-year adjustable rate mortgages climbed to the highest level in 31/2 years. Analysts expect rising mortgage rates to cool the booming housing market in coming months.
Mortgage giant Freddie Mac reported Thursday that the nationwide average for 30-year, fixed-rate mortgages rose this week to 6.10 percent, the highest level since 30-year mortgages were at 6.21 percent in late July 2004.
Last week the 30-year mortgage had risen to 6.03 percent, marking the first time it had been above 6 percent since the last two weeks in March.
Rates on all other types of mortgages were up as well this week, reflecting growing nervousness in financial markets about inflation pressures triggered by the sharp rise in energy prices after the Gulf Coast hurricanes shut down oil production.
The nation’s housing market has been booming this year with sales of both new and existing homes expected to set records for the fifth consecutive year. However, economists are forecasting that the sales pace will slow next year under the impact of higher mortgage rates.
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.65 percent this week, up from 5.62 percent last week.
One-year adjustable rate mortgages rose to 4.89 percent. This was up from 4.85 percent last week and pushed the one-year ARM to its highest level since it was at 4.91 percent the week ending April 26, 2002.
Rates on five-year hybrid adjustable rate mortgages averaged 5.59 percent this week, up from 5.57 percent last week.
The nationwide averages for mortgage rates do not include add-on fees known as points. The one-year and five-year ARM carried a nationwide average fee of 0.7 point while the 15-year mortgage had an average fee of 0.6 point and the 30-year carried an average fee of 0.5 point.
A year ago, 30-year mortgages averaged 5.69 percent, 15-year mortgages were at 5.07 percent and one-year ARMs averaged 4.02 percent. Freddie Mac does not have historical data on the five-year ARM, which it began tracking this year.
People
Debbie Lamberty has joined the Lake Stevens office of Windermere Realty as a sales associate.
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.
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