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Mortgage rates rise
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October 14, 1999: 12:16 p.m. ET
Freddie Mac: Inflation fears push rates up for 2nd consecutive week
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NEW YORK (CNNfn) - Mortgage rates crept up for the second week in a row after inflation fears were re-ignited by a series of troublesome economic reports, mortgage firm Freddie Mac reported Thursday.
The rate on a 30-year, fixed-rate mortgage averaged 7.85 percent for the week ending Oct. 15, up from 7.82 percent. That's nearly a percentage point ahead of a year earlier, when the 30-year fixed rate was pegged at 6.90 percent.
The average for the 15-year fixed-rate mortgage also moved higher to 7.45 percent from 7.43 percent last week. The rate was 6.58 percent at the same time last year.
Adjustable-rate mortgages climbed as well. The average one-year adjustable rate mortgage is at 6.31 percent, up slightly from 6.27 percent a week ago and 5.35 percent one year ago.
(Click here to see a breakdown of average mortgage rates by U.S. region.)
Robert Van Order, Freddie Mac's chief economist blamed a wave of economic reports that have pointed to the rise of inflationary pressures.
"September's employment report revealed wages posted the largest gains in 16 years, adding to the financial markets worries about inflation," said Van Order. "That concern led to slightly higher interest rates this week."
Thursday's higher-than-expected retail sales report also helped fuel inflation jitters, the economist said.
But Van Order stressed that the results of the Producer Price Index, due out Friday, and the Consumer Price Index, scheduled for release next week, would play a role in determining the direction of interest rates. 
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