Freddie Mac doesn't expect rates to rise above 6-1/4 percent by the year's end; 30-year at 5.85%. March 10, 2005: 12:15 PM EST
Mortgage Rates
30 yr fixed mtg
5.08%
15 yr fixed mtg
4.41%
30 yr fixed jumbo mtg
5.90%
5/1 ARM
4.05%
5/1 jumbo ARM
4.54%
NEW YORK (CNN/Money) -
Mortgage rates continued their trend upward, but Freddie Mac says rates are expected to hover near 6 percent for quite some time, a survey released Thursday said.
"Even with rising mortgage rates over the last four weeks, 30-year fixed-rate mortgage rates remain an historical bargain," said Amy Crews Cutts, Freddie Mac deputy chief economist. "To date, contract rates for these mortgages have been below 6 percent for 31 weeks in a row, and we don't expect these rates will rise very much above 6-1/4 percent by year end."
The average rate on 30-year fixed-rate mortgages rose to 5.85 percent in the week ended Thursday, with an average 0.6 point payable up front, up from 5.79 percent the previous week.
A year earlier, the average rate on the 30-year fixed-rate loan stood at 5.41 percent.
"Even with rising mortgage rates over the last four weeks, 30-year fixed-rate mortgage rates remain a historical bargain," she added. "To date, contract rates for these mortgages have been below 6 percent for 31 weeks in a row, and we don't expect these rates will rise very much above 6-1/4 percent by year end."
The 15-year mortgage rate averaged 5.38 percent, with a 0.6 percentage point payable up front, up from 5.33 percent in the previous week.
A year earlier, the 15-year rate averaged 4.69 percent.
Five-year adjustable-rate mortgages (ARMs) averaged 5.22 percent, with an average 0.6 point payable up front, up from 5.17 last week. There was no year-earlier figure since Freddie Mac only began tracking this mortgage rate at the start of this year.
One-year ARMs averaged 4.24 percent, up from last week's 4.14 percent, with 0.7 of a point payable up front. At this time last year, the one-year ARM rate averaged 3.41 percent.
"Last Friday's employment report reinforced the perception that the economy is on sure footing, leading bond markets to push interest rates higher again this week," added Crews Cutts.
"Although inflation remains tame, the recent spike in oil prices does put inflationary pressures on the economy and was an additional factor causing higher interest rates."
Freddie Mac's (down $0.16 to $64.94, Research) average mortgage rates are based on a survey of 125 lenders nationwide.
