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Mortgage rates move up
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April 20, 2000: 1:46 p.m. ET
Rise in Consumer Price Index, along with inflation worries, drive long-term rates up
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NEW YORK (CNNfn) - Inflation fears pushed long-term mortgage rates up slightly, according to a survey released by Freddie Mac Thursday.
The average rate on a 30-year fixed-rate mortgage was 8.16 percent for the week ending April 21, an increase from 8.12 percent a week earlier.
A year ago, the same mortgage stood at 6.88 percent.
The average for a 15-year fixed-rate mortgage stood at 7.82 percent, up from 7.76 percent the previous week. Twelve months ago the same rate averaged 6.51 percent.
 A one-year adjustable rate mortgage (ARM) averaged 6.76 percent, down from 6.86 percent a week earlier.
The same mortgage averaged 5.56 percent a year ago.
"The recent rise in the Consumer Price Index spooked the financial market, pushing interest rates a little higher this week," said Frank Nothaft, deputy chief economist for Freddie Mac. "The decline in housing starts, however, mitigated concern that the economy is growing to fast and led to confidence that the Fed's actions are having the desired results."
[Click here to see a breakdown of U.S. mortgage rates by region.]
Nothaft said it was important to note that throughout the uncertainty in the financial sector, mortgage rates have remained stable and affordable.
Freddie Mac (FRE: Research, Estimates), or the Federal Home Mortgage Corp., is a publicly traded company the government set up in 1970 to provide a flow of funds to mortgage lenders.
It buys mortgages from banks, bundles them, and then sells them as mortgage-backed securities. Its products and the products of other similar agencies have become increasingly popular as an alternative to government-backed bonds, particularly with international investors. 
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