Industry News

Mortgage rates rise on market apprehension

Despite inflation report, Fed hints at possible pause
Published on Jul 20, 2006

Mortgage rates marched higher this week as markets held onto a slight belief that inflation may not yet be fully contained, according to surveys conducted by Freddie Mac and Bankrate.com. In Freddie Mac's survey, the 30-year fixed-rate mortgage rose to an average 6.8 percent this week, up from last week's average of 6.74 percent. The 15-year fixed-rate mortgage also gained from last week, rising from 6.37 percent to 6.41 percent. Points, which are fees charged by lenders for loan processing expressed as a percent of the loan, averaged 0.5 on the 30-year and 0.4 on the 15-year loans. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 6.36 percent this week, with an average 0.5 point, up from last week when it averaged 6.33 percent. The one-year Treasury-indexed ARM averaged 5.8 percent, with an average 0.6 point, up from last week's average of 5.75 percent. "Financial markets were a bit jittery after core Consumer Price Index (CPI) figures for June were rele...

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