30-year mortgage rates rise

WASHINGTON – Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.08 percent this week. That was up from 5.98 percent last week.

It was the highest level for 30-year mortgages in 11 weeks, since they averaged 6.13 percent the week of March 16.

Analysts attributed the increase to rising concerns in financial markets about what the Fed might do to battle increased inflation pressures. Financial markets this week pushed the yield on 10-year Treasury bonds above 4 percent for the first time in five months.

“Mortgage rates drifted up this week over market concerns that the Federal Reserve Board may raise short-term interest rates later this year,” said Frank Nothaft, Freddie Mac’s chief economist.

Most other types of mortgage rates showed increases this week, according to the Freddie Mac survey.

Rates on 15-year fixed-rate mortgages rose to 5.66 percent, up from 5.55 percent last week.

The five-year adjustable-rate mortgage edged up to 5.62 percent, compared to 5.61 percent last week. However, the rate on a one-year adjustable-rate mortgage edged down slightly, dropping to 5.22 percent, compared to 5.24 percent last week.

The mortgage rates do not include add-on fees known as points. The nationwide average fee for 30-year and 15-year fixed-rate mortgages and one-year adjustable-rate mortgages was 0.6 point. The five-year ARM had an average fee of 0.5 point.

A year ago, rates on 30-year mortgages stood at 6.42 percent, 15-year mortgage rates averaged 6.12 percent, five-year adjustable-rate mortgages were at 6.19 percent and one-year adjustable-rate mortgages were at 5.57 percent.