Industry News

Mortgage rates rise in weekly surveys

Inflation risk still troubles Fed

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Mortgage rates gained this week on the Federal Reserve's belief that inflation could still pose a problem, Freddie Mac and reported today. In Freddie Mac's survey, the 30-year fixed-rate mortgage climbed to an average 6.21 percent from last week's 6.15 percent, while the 15-year fixed-rate mortgage rose from 5.87 percent to 5.92 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. Borrowing costs on adjustable-rate mortgages (ARMs) were mixed, as the five-year Treasury-indexed ARM grew from 5.89 percent to 5.92 percent while the one-year ARM held at 5.48 percent. Points on these loans averaged 0.6 and 0.7, respectively. "Mortgage rates inched up this week following the Federal Open Market Committee statement reiterating that the predominant concern remains the risk that inflation will fail to moderate as expected," Frank Nothaft, Freddie Mac vice president and chief economist, said...