Mortgage rates leap higher
Declines in worker productivity and rising labor costs push rates on 30-year loan to six-week high.
NEW YORK (CNNMoney.com) - Mortgage rates jumped last week, pushed higher by signs of rising inflation, lifting rates on the 30-year loan to six-week highs. The average rate for 30-year fixed-rate mortgages rose to 6.23 percent from 6.12 percent in the prior week, a Freddie Mac survey said.
In the year-ago period, the 30-year mortgage averaged 5.63 percent. The average rate on 15-year fixed-rate mortgages rose to 5.81 percent, up from last week's 5.70 percent. A year ago, the loan averaged 5.14 percent. Five-year adjustable-rate mortgages averaged 5.87 percent, up from 5.75 percent the previous week. In the year-ago period, the five-year averaged 5.00 percent. One-year adjustable-rate mortgages averaged 5.33 percent, up from 5.20 percent the week prior. At this time last year, the one-year loan averaged 4.23 percent. "Declines in worker productivity, coupled with accelerating labor costs, increase the threat of inflation down the road," said Frank Nothaft, Freddie Mac vice president and chief economist. "Still, to keep things in perspective, mortgage rates are currently only about one-half a percentage point higher than they were at this time last year." ____________________________ |
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