Industry News

More Fed hikes put scare into mortgage rates

Borrowing costs hit 4-year high
Published on Jun 22, 2006

Mortgage rates continued higher for the second consecutive week on markets' belief that the current rate of inflation will force the Fed to raise its federal funds rate through August, according to surveys conducted by Freddie Mac and Bankrate.com. In Freddie Mac's survey, the 30-year fixed-rate mortgage climbed to an average 6.71 percent for the week ended today, up from last week's average of 6.63 percent. The 30-year fixed has not been higher since May 31, 2002, when it averaged 6.76 percent. The average for the 15-year fixed-rate mortgage rose to 6.36 percent this week, up from last week's average of 6.25 percent. The 15-year fixed has not been higher since May 17, 2002, when it averaged 6.37 percent. Points, which are fees charged by lenders for loan processing expressed as a percent of the loan, averaged 0.5 on the 30- and 15-year loans. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 6.32 percent this week, with an average 0.6 point, up from last week ...

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