Mortgage rates creep higher
Market anticipates another rate hike from the Fed; relatively low rates still fuel housing market.
NEW YORK (CNNMoney.com) - Long-term mortgage rates rose slightly last week in anticipation of another interest rate hike from the Federal Reserve. The average rate for 30-year fixed-rate mortgages crept up to 6.12 percent from 6.10 percent in the prior week, a Freddie Mac survey said.
In the year-ago period, the 30-year mortgage averaged 5.66 percent. The average rate on 15-year fixed-rate mortgages rose to 5.70 percent from last week's average of 5.67 percent. A year ago, the loan averaged 5.02 percent. Five-year adjustable-rate mortgages averaged 5.75 percent, unchanged from the previous week. In the year-ago period, the five-year averaged 5.02 percent. One-year adjustable-rate mortgages averaged 5.20 percent, compared to 5.18 percent from the week before. At this time last year, the one-year loan averaged 4.18 percent. "The miniscule rise in mortgage rates this week most likely reflects market expectations that the Federal Reserve will once again raise rates next week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Keep in mind, however, long-term rates are still below December's monthly average and continue to fuel the housing market. Last week, mortgage applications for home purchases were stronger than last December's average." ____________________________ |
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