Industry News

Mortgage rates higher on consumer confidence

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Mortgage rates rose considerably this week on news of strong consumer confidence and unpredictable inflation, Freddie Mac and 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...