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Mortgages near 2-year high
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January 6, 2000: 5:07 p.m. ET
Fear of Fed rate increase pushes mortgages up for eighth consecutive week
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NEW YORK (CNNfn) - Mortgage rates rose for the eighth consecutive week, reaching their highest level in nearly two years, according to a survey from Freddie Mac.
The 30-year fixed rate mortgage averaged 8.15 percent for the week ending Jan. 7, up from 8.06 percent last week. A year ago the same mortgage averaged 6.79 percent.
The average rate for a 15-year fixed rate came in at 7.73 percent, also close to 0.1 points up from last week’s 7.66 percent. A year ago that rate stood at 6.43 percent. That rate now is higher than at any point since the week ending Sept. 13, 1996. The 30-year fixed rate is at its highest point since the week of April 18, 1997.
The rate for a one-year adjustable-rate mortgage, which dipped last week to 6.56 percent, rose this week to 6.60 percent. A year ago it averaged 5.61 percent.
(Click here for a breakdown of average U.S. mortgage rates by region.)
Robert Van Order, Freddie Mac’s chief economist, blamed the higher mortgage rates on fear that the Federal Reserve will raise rates at its next meeting, in February.
"The primary factor influencing future mortgage rates will be the Fed’s decision next month,” he said.
Freddie Mac, or the Federal Home Mortgage Corp., buys mortgages from banks and repackages them as mortgaged-backed securities. 
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