Rates on 30-year mortgages rose for a fourth consecutive week, climbing to the highest level since late March, as financial markets continued to worry about inflation.
Mortgage giant Freddie Mac reported Thursday that the nationwide average for 30-year, fixed-rate mortgages rose this week to 5.98 percent, up from 5.91 percent last week. It was the highest level since rates rose the week of March 31 to 6.04 percent, which so far has been the highest nationwide average for the 30-year mortgage so far this year.
“Mortgage rates have been rising for the last four weeks on inflation jitters caused in part by extended higher energy prices,” said Frank Nothaft, chief economist for Freddie Mac.
Energy prices have been pushed upward by Hurricanes Katrina and Rita, which shut down oil platforms and refineries along the Gulf Coast.
The Federal Reserve last month decided to raise a key short-term interest rate it controls for an 11th time with Fed officials saying they are more worried about the inflation threat from surging energy prices than they are concerned that the hurricanes will have a lasting impact on economic growth.
Nothaft said he believed mortgage rates would continue to rise in coming months as the economy keeps growing but at “perhaps a slightly slower pace than in the recent past.”
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.54 percent this week, up from 5.48 percent last week.
One-year adjustable rate mortgages rose to 4.77 percent, the highest level in more than three years, and up from 4.68 percent last week.
Rates on five-year hybrid adjustable rate mortgages averaged 5.48 percent this week, up from 5.31 percent last week.
A year ago, 30-year mortgages averaged 5.82 percent, 15-year mortgages were at 5.24 percent and one-year ARMs averaged 4.08 percent. Freddie Mac does not have historical data on the five-year ARM which it began tracking this year.
People
Anne Nelson has joined Preview Properties, Inc. as a sales associate at the Bothell office. Kim Koontz and Jessica Thany have also joined the Bothell office. Zach Shelly and Maria Corcoro have joined the Shoreline office.
Jim Davis has been named assistant branch manager in the Marysville office of Preview Properties, Inc.
Vladimir Dorosh has joined sales staff Home Realty’s Everett South office.
Samantha Shelton has joined Legacy Escrow Service Inc. of Everett as a senior escrow closer.
Events
“Real Estate Investors Super Conference,” presented by the Real Estate Association of Puget Sound in cooperation with Fortune Maker$ Seminars, runs Oct. 21-23 at the Doubletree Hotel Seattle Airport. For details, visit www.reapsweb.com.
Real estate trainer Wes Taylor will come to Everett Nov. 8 to talk about developing and protecting client relationships to increase sales. The four-hour course is sponsored by Legacy Escrow Service Inc. and Commonwealth Title. Realtors are invited to attend the 9 a.m. until 1 p.m. seminar at Mitzels American Kitchen, 303 128th St. SW. Cost is $35. Call 425-353-1401 to register.
A public auction involving four parcels of state trust land near Lake Goodwin will take place in at the Snohomish County Courthouse in Everett Dec. 9. The forested parcels include two of 160 acres with minimum bids of $1.35 million and $1.44 million respectively, one of 140 acres with a $2 million minimum bid and another of 80 acres with a $640,000 minimum bid. The land is school trust land that had been dedicated for forest production but is deemed to earn more money by a sale because of the area’s growth.
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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