Industry News

Mortgage rates hit 10-month highs

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Mortgage rates this week grew to highs not seen since last August on news of stronger economic conditions and rising inflation risk, Freddie Mac and reported today. In Freddie Mac's survey, the 30-year fixed-rate mortgage jumped to an average 6.53 percent from 6.42 percent a week ago, while the 15-year fixed-rate mortgage rose from 6.12 percent to 6.22 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 climbed this week owing to market concerns of a tight labor force and wage growth. May's unemployment rate remained at the second-lowest level since May 2001, while average hourly earnings rose," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement. "Additionally, unit labor costs increased 1.8 percent over the first three months of the year, tripling the original estimate, and fueling inflation fears." Borrowing costs on ad...