|
Mortgage rates on the rise
|
 |
June 29, 2000: 1:48 p.m. ET
Long-term home-loan rates jump higher, reversing downward trend
|
NEW YORK (CNNfn) - Mortgage rates moved upward as June neared an end, reversing a downward trend of four weeks, according to a survey released this week by Freddie Mac. But the survey also noted that rates are expected to stabilize in the coming weeks, aided by the Federal Reserve Board's decision not to raise interest rates.
The average rate on a 30-year fixed-rate mortgage (FRM) was 8.22 percent for the week ending June 29, jumping from 8.14 percent a week earlier. The same mortgage was 7.71 percent a year ago.
 The average for a fixed-rate 15-year mortgage was 7.92 percent this week, down from 7.85 percent the previous week. A year ago the rate was 7.34 percent.
A one-year adjustable rate mortgage (ARM) averaged 7.26 percent, edging down from 7.22 percent the previous week. The same mortgage averaged 6.05 percent a year ago.
[Click here to see a breakdown of U.S. mortgage rates by region.]
"Mortgage rates rose slightly last week in tandem with a gentle upward trend seen in other market interest rates," said Robert Van Order, chief economist for Freddie Mac. "In general, the Federal Reserve Board's decision not to raise interest rates this week will likely hold down inflation fears and interest rates in the capital markets as the summer unfolds."
Van Order said mortgage rates should ease in early July, and "barring some unforeseeable event" should remain below 8.25 percent, at least until the Fed meets again in August.
Freddie Mac (FRE: Research, Estimates), or Federal Home Mortgage Corp., is a publicly traded company the government established in 1970 to provide a flow of funds to mortgage lenders.
It buys mortgages from banks, bundles them, and then resells 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. 
|
|
|
|
|
 |
|
.
