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Mortgage rates rise
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May 6, 1999: 1:15 p.m. ET
Rates climb for third consecutive week amid inflation fears, says Freddie Mac
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NEW YORK (CNNfn) - The cost of borrowing to buy a home rose slightly this week, mortgage firm Freddie Mac said Thursday.
For the week ending May 7, the average rate on U.S. 30-year fixed mortgages inched up to 7.02 percent from last week's 6.93 percent. A year ago, rates averaged 7.14 percent.
Fifteen-year loans also were higher, averaging 6.61 percent from 6.55 percent the week before. The rate for these mortgages averaged 6.78 percent for the same period last year.
One-year adjustable rate mortgages climbed to 5.68 percent from 5.63 percent. A year ago, the rate was 5.65 percent.
Robert Van Order, chief economist at Freddie Mac, cited inflation fears for the rise.
"When GDP figures were released last week, showing higher than expected economic growth in the first quarter, inflation jitters reappeared," Van Order said. "Fear of inflation then pushed rates up, followed closely by mortgage rates."
April's employment figures will determine whether interest rates will be hiked, Van Order added.
"If employment is high, interest rates will undoubtedly rise," he said.
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