WASHINGTON – Rates on 30-year mortgages rose for the first time in five weeks as investors awaited word from next week’s meeting of the Federal Reserve on the future direction of mortgage rates.
Mortgage giant Freddie Mac reported Thursday that the nationwide average for rates on 30-year, fixed-rate mortgages rose slightly this week to 5.74 percent, up from 5.71 percent last week.
It was the first increase for the 30-year rate since Aug. 11 when it climbed to 5.89 percent.
Analysts attributed the slight increase to investor concern about what the Federal Reserve might do next week.
Many private economists believe the Fed will nudge a key short-term rate it controls up by another quarter-point at the Tuesday meeting, which would be the 11th rate hike since the Fed began gradually raising rates in June 2004.
However, some analysts argue that the Fed may decide to pause in its rate hikes next week until it can further judge the adverse impacts of Hurricane Katrina on the economy.
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.32 percent this week, up from 5.30 percent last week.
One-year adjustable rate mortgages rose slightly to 4.46 percent from 4.45 percent last week. In mid August, one-year ARMs hit their highest level in more than three years at 4.58 percent.
Rates on five-year hybrid adjustable rate mortgages averaged 5.26 percent this week, up from 5.24 percent last week.
People
John Vyazhevich, Jane Reinhardt and Jack Campbell have joined the Bothell office of Preview Properties Inc.
Deanna Gabelein has joined the Mukilteo office of Windermere Real Estate.
Good deeds
HomeStreet Bank has donated $10,000 for community housing to seven different organizations. Those serving Snohomish County include Cocoon House, which provides youth housing and services and Friends of Youth, which also provides housing for homeless youth.
Send your real estate news items to Mike Benbow, Business editor, The Herald, P.O. Box 930, Everett, WA 98206, by fax at 425-339-3435, or by e-mail at economy@heraldnet.com.
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