Industry News

Consumer confidence boosts mortgage rates

30-year fixed climbs above 6%

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Long-term mortgage interest rates moved higher for the first time in five weeks, fueled by a rise in consumer confidence, according to surveys conducted by mortgage buyer Freddie Mac and Bankrate. In Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.08 percent for the week ended today, up from last week when it averaged 5.98 percent. The average for the 15-year fixed-rate mortgage this week is 5.49 percent, up from last week when it averaged 5.39 percent. Points on both the 30- and 15-year averaged 0.6. One-year Treasury-indexed adjustable-rate mortgages averaged 4.17 percent this week, with an average 0.6 point, up from last week when it averaged 4.12 percent. "Mortgage rates rose a little this week in response to expectations that the Federal Reserve Board is willing to move more aggressively if inflation should become an issue," said Frank Nothaft, Freddie Mac vice president and chief economist. "So far, inflation seems to be under control, but if the eco...