October 12, 2007 in Business

Mortgage rates rise

Associated Press The Spokesman-Review
 

WASHINGTON – Rates on 30-year mortgages edged up slightly this week following a better-than-expected report on job growth.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.40 percent this week, up from 6.37 percent last week.

In mid-September, the nationwide average for 30-year mortgages had dipped to 6.31 percent, the lowest level since May 17.

Analysts attributed this week’s rise in mortgage rates to a better-than-expected jobs report showing that the economy created a solid 110,000 jobs in September and, even more significantly, a drop of 4,000 jobs in August was revised away.

Frank Nothaft, chief economist at Freddie Mac, said the slight rise in rates this week also reflected a feeling in bond markets that future rate cuts by the Federal Reserve are less certain.

Rates on 15-year fixed-rate mortgages averaged 6.06 percent this week, up from 6.03 percent last week. Rates on five-year adjustable rate mortgages averaged 6.12 percent, up from 6.11 percent last week.


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