Industry News

Inflation impacts mortgage rates

Borrowing costs not likely to fall anytime soon

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Mortgage rates posted growth this week on renewed inflation fears, 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 6.16 percent from 6.14 percent last week, while the 15-year fixed-rate mortgage gained from 5.88 percent to 5.9 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. "Mortgage rates were stable this week as the bond market took readings on producer prices and consumer prices in stride," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement. "Excluding food and energy, core inflation at the wholesale level was up more than had been anticipated in February, but at the retail level the increase was in line with expectations. Weighing the relevant factors, The Fed decided to leave the target federal funds rate unchanged at 5.25 percent. "Looking at the housing market...