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Personal Finance > Your Home
Mortgage rates head north
July 20, 2000: 1:46 p.m. ET

Increase in home loan interest rates reigns in bustling housing market
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NEW YORK (CNNfn) - Mortgage rates continued to seesaw this week, by reversing their slide and edging up which in turn put a damper on the robust housing market, according to a report released by Freddie Mac.

The average rate on a 30-year fixed-rate mortgage (FRM) was 8.21 percent for the week ending July 21, rising from 8.09 percent a week earlier. The same mortgage was 7.52 percent a year ago.

The average for a fixed-rate 15-year mortgage was 7.93 percent this week, up from 7.80 percent the previous week. A year ago the rate was 7.16 percent.

A one-year adjustable rate mortgage (ARM) averaged 7.32 percent, up from 7.22 percent the previous week. The same mortgage averaged 5.97 percent a year ago.

graphic[Click here to see a breakdown of U.S. mortgage rates by region.]

"The drop in housing starts in June shows that higher mortgage rates have begun to put a damper on the bustling housing market, reinforcing the perception that the economy is finally slowing to a more sustainable pace," said Robert Van Order, chief economist for Freddie Mac.

Van Order added that although mortgage rates are higher than they were a year ago, "historically, they are still very affordable at current levels."

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. Back to top

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.