Industry News

Mortgage rates higher on consumer confidence

Rising costs to drag housing in coming months

Mortgage rates rose considerably this week on news of strong consumer confidence and unpredictable inflation, Freddie Mac and Bankrate.com reported today. In Freddie Mac's survey, the 30-year fixed-rate mortgage reached an average 6.37 percent, up from last week's 6.21 percent, while the 15-year fixed-rate mortgage grew from 5.92 percent to 6.06 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.4 on the 30- and 15-year loans. "Stronger-than-expected consumer confidence and recent comments from members of the Federal Reserve (Fed) raised some inflation concerns in the market, causing it to lower expectations of a Fed rate cut this year. This helped push mortgage rates higher this week," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement. Borrowing costs on adjustable-rate mortgages (ARMs) also climbed this week, with the five-year Treasury-indexed ARM rate average rising from 5.9...

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