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Mortgage rates edge up
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November 9, 2000: 2:21 p.m. ET
Home-loan interest raised by inflation fears over wage growth figures
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NEW YORK (CNNfn) - Mortgage rates moved higher a week after a higher-than expected employment wage growth sparked fears of inflation, according to a survey released by Freddie Mac.
The benchmark 30-year fixed-rate mortgage (FRM) averaged 7.79 percent for the week ending Nov. 10, up slightly from last week's average of 7.73 percent. A year ago, the same mortgage averaged 7.67 percent.
The average this week for a 15-year fixed-rate mortgage was 7.44 percent, up from last week's average of 7.41 percent. A year ago, the same rate stood at 7.3 percent.
 One-year adjustable-rate mortgages (ARMs) this week averaged 7.23 percent, edging down from last week's average of 7.12 percent. The same mortgage averaged 6.3 percent this time last year.
[Click here to see a breakdown of U.S. mortgage rates by region.]
"Financial markets got a little edgy about last week's employment wage growth figures, which were higher than expected. This raised inflation fears again, nudging interest rates a little higher this week," said Robert Van Order, chief economist for Freddie Mac.
"However, the Producer Price Index released today strongly indicates inflation is well under control. In fact, the core rate decreased for the first time since January of this year. This should act as a counter-balance to recent nervousness, reducing upward pressure on mortgage rates," added Van Order.
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 entities, have become increasingly popular as an alternative to government backed bonds, particularly with international investors. 
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Freddie Mac
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