Mortgage rates turn higher30-year fixed rate up to 6.23 percent up from 6.21 last week.NEW YORK (CNNMoney.com) -- Indicators of a positive economy, as well as concerns of core inflation expectations helped long-term mortgage rates edge up to their highest levels since November, according to a survey. The 30-year fixed mortgage rate averaged 6.23 percent for this week, up from 6.21 last week, according to Freddie Mac's (up $0.02 to $64.97, Charts) Primary Mortgage Market Survey released Thursday. The rate is the highest it has been since the week ending Nov. 16, 2006, when it averaged 6.24 percent. Last year at this time, it averaged 6.10 percent. The 15-year fixed mortgage rate averaged 5.98 percent, up from 5.96 percent last week, according to the survey. The rate is the highest since the week ending Nov. 9, 2006 when it stood at 6.04 percent. Last year at this time, it averaged 5.67 percent. "Interest rates drifted slightly higher following the latest positive economic reports," said Frank Nothaft, Freddie Mac vice president and chief economist. "Shoppers bustling through the holiday season boosted December's retail sales above consensus expectations. In the same month, industrial production reversed a three-month decline and rose faster than had been anticipated," he said. "Expected inflation also contributes to interest-rate movements. In the coming year, we expect inflation on average to remain moderate at 2.5 percent, barring shocks from the energy sector, but concerns over the level of core inflation will continue to cause mortgage rates to fluctuate." The 5-year adjustable-rate mortgage stood at 6.04 percent, up slightly from 6.03 percent last week. Last year, it stood at 5.75 percent. The 1-year ARM averaged 5.51 percent this week, up from last week when it stood at 5.44 percent. Last year at this time, the one-year ARM averaged 5.18 percent. Other lending companies affected by the mortgage rates are Countrywide Financial Corp. (up $0.09 to $40.90, Charts) and Wachovia (up $0.21 to $56.77, Charts). -------------------------------------------- Home building rebounds, but ... |
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