Mortgages
Rates on 30-year mortgages rose again this week, climbing to the highest level in more than nine months, reflecting more concerns about how the Federal Reserve will respond to higher inflation pressures.
Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.45 percent this week. That was up from 6.42 percent last week.
It was the highest level for 30-year mortgages since they averaged 6.46 percent for the week of Sept. 9, 2007. It marked the fifth consecutive weekly increase and the fifth week that they have been above 6 percent.
Fifteen-year fixed-rate mortgages rose to 6.04 percent, up from 6.02 percent last week.
The five-year adjustable-rate mortgage rose to 5.99 percent, up from 5.89 percent last week. The rate on a one-year ARM rose to 5.27 percent, compared with 5.19 percent last week.
The housing market is facing numerous headwinds, from slumping prices, which are keeping potential buyers on the fence, to rising mortgage defaults, which are dumping more homes on an already glutted market.
A year ago, rates on 30-year mortgages stood at 6.67 percent, 15-year mortgage rates averaged 6.34 percent, five-year ARMs were at 6.30 percent and one-year ARMs averaged 5.65 percent.
Send 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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