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Mortgage rates inch up
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December 24, 1998: 11:26 a.m. ET
Despite slight gain, rates on 30-year fixed loan stay well below 7 percent
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NEW YORK (CNNfn) - Holiday house hunters found a lump of coal in their stockings Thursday, as mortgage firm Freddie Mac reported mortgage rates had climbed slightly higher.
For the week ended Dec. 25, the rate on U.S. 30-year fixed mortgages was an average 6.77 percent, compared to last week's 6.69 percent. Fifteen-year loans were also higher, averaging 6.41 percent from last week's 6.35 percent.
One-year adjustable rate were fairly steady, climbing to an average 5.58 percent from 5.55 percent the week before.
A year ago, interest rates on 30-year mortgages were 6.99 percent, 15-year rates were 6.57 percent, and adjustables came in at 5.53 percent.
Freddie Mac said lenders charged an average 1.0 percent in fees and points on 30-year and 15-year mortgages, and 1.1 percent on adjustable-rate mortgages.
"Despite turmoil in other markets, mortgage rates have remained remarkably low and stable over this last year," said Robert Van Order, chief economist for Freddie Mac. "Although mortgage rates inched up this week, we expect they will remain at or around 7 percent for the foreseeable future."
Earlier Thursday, the Commerce Department reported that personal income rose a stronger than expected 0.5 percent in November while spending grew by 0.1 percent. The savings rate came in at 0.1 percent.
And on Tuesday, the Federal Reserve, in a widely anticipated move, opted against taking any action on interest rates. The federal funds rate, which banks charge each other for overnight loans, remained at 4.75 percent. The discount rate, charged on emergency loans to banks, was held at 4.50 percent. 
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