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Mortgage rates soar
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June 3, 1999: 1:35 p.m. ET
Robust housing market, strong economy propel rates sharply higher
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NEW YORK (CNNfn) - Mortgage rates soared this week amid concerns the economy may be growing too quickly, mortgage firm Freddie Mac reported Thursday.
For the week ending June 5, the average rate on U.S. 30-year fixed mortgages climbed sharply to 7.41 percent from 7.23 percent last week. A year ago, rates averaged 7.05 percent.
Fifteen-year loans hit their highest levels since September of 1997, jumping to 7.04 percent from 6.84 percent the week before. The rate for these mortgages averaged 6.70 percent for the same period last year.
One-year adjustable rate mortgages rose to 5.85 percent, the highest rate since March, from 5.73 percent. A year ago, the rate was 5.68 percent.
Freddie Mac deputy chief economist Frank Nothaft said concerns over the strength of the U.S. economy propelled rates higher.
"New home sales, up 9.2 percent in April, confirmed that the housing market continues to be strong, fueling concerns that the economy is growing too quickly," he said. "These concerns pushed mortgage rates higher this week.
Consequently, Nothaft said, Friday's employment report will be watched closely for what it says about the strength of the economy in May. 
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