Industry News

Inflation jitters push up mortgage rates

Economist sees fluctuation and higher rates on the way

Mortgage rates continued climbing this week, according to surveys conducted by Freddie Mac and Bankrate. According to Freddie Mac's, rates on the 30-year fixed-rate mortgage averaged 6.23 percent, up from last week's average of 6.12 percent. Rates on the 15-year fixed-rate mortgage averaged 5.81 percent, up from 5.7 percent. Points on each type of mortgage averaged 0.5 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.87 percent, with an average 0.5 point, according to Freddie Mac. One-year Treasury-indexed ARMs averaged 5.33 percent, with an average 0.7 point, up from last week when it averaged 5.2 percent. "Declines in worker productivity coupled with accelerating labor costs increase the threat of inflation down the road. Inflationary pressure generated by these two factors pushes long-term mortgage rates upward, which is why we have seen rates rise these last two weeks," said Frank Nothaft, Freddie Mac vice president and chief economist. "Mortgage ...