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Mortgages climb again
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July 1, 1999: 12:42 p.m. ET
Higher rates reflect speculation over Fed action, Freddie Mac says
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NEW YORK (CNNfn) - Mortgage rates shot up again this week amid speculation the Fed would raise interest rates, mortgage firm Freddie Mac reported Thursday.
For the week ending July 2, the average rate on U.S. 30-year fixed-rate mortgages was 7.71 percent, up from last week's 7.63 percent. One year ago, the rate was 6.98 percent.
Fifteen-year loans climbed to 7.34 percent from 7.28 percent the week before. The rate for these mortgages averaged 7.28 percent for the same period last year.
One-year adjustable-rate mortgages rose to 6.05 percent from last week's 5.93 percent. A year ago, the rate was 5.66 percent.
(Click here to see a breakdown of average mortgage rates by U.S. region.)
Robert Van Order, chief economist for Freddie Mac, said the increase reflected the capital market's speculation about how the Federal Reserve would act regarding interest rates.
"When the Fed raised short-term rates, it served to quell fears of inflation and interest rates began to ease. However, when the results of the Purchasing Management Report were released today -- showing areas of strength -- rates began to climb again," he said.
The economist predicts Friday's employment report will be crucial in determining which way the markets go.
"A strong report will push interest rates higher, while a weaker one will help keep rates lower," Van Order said. 
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