Mortgages hit highest level in nine weeks

WASHINGTON — Rates on 30-year mortgages rose this week to the highest level in nine weeks as financial markets reacted to a series of more upbeat financial reports.

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.23 percent this week, up from 6.21 percent last week. It was the highest level since 30-year mortgages stood at 6.24 percent the week of Nov. 16.

Analysts said that financial markets were reacting to various economic reports showing that the economy was doing better at the end of the year than had been expected, lowering chances that the Federal Reserve will move any time soon to cut interest rates.

“Interest rates drifted slightly higher following the latest positive economic reports,” said Frank Nothaft, chief economist for Freddie Mac. “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.”

The Commerce Department reported Thursday that home construction rose by 4.5 percent in December to a seasonally adjusted annual rate of 1.642 million units. It was the second consecutive monthly gain and a possible sign that the steep slump in housing may be coming to an end.

However, analysts cautioned against reading too much into the figure given that it was influenced by unusually warm weather in December.