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30 year fixed mortgage rate30-year mortgage rates up
Mortgage giant Freddie Mac reported Thursday 30-year, fixed-rate mortgages averaged 6.21 percent nationwide last week, up from 6.15 percent the previous week. It was the highest level for 30-year mortgages since they averaged 6.22 percent the week of April 12. Rates had either fallen or been unchanged over the previous month as investors grew hopeful that weaker-than-expected economic data might convince the Fed to cut interest rates to bolster the sagging economy. However, the Fed at its latest meeting on May 9 said it still viewed the threat of inflation as a greater risk than the possibility that economic growth might slow too much.
Analysts said any increase in mortgage rates was likely to be modest given the economic environment. "As long as core inflation continues to trend downward and economic growth remains sub-par, it is unlikely that we will see any big movement in mortgage rates," said Frank Nothaft, Freddie Mac's chief economist. Mortgage rates have been relatively stable since the beginning of the year, with the 30-year fluctuating in a narrow range that saw it go as high as 6.34 percent in early February and as low as 6.14 percent for the first two weeks in March. Freddie Mac said its survey found other types of mortgages showed increases last week. Rates on 15-year, fixed-rate mortgages rose to 5.92 percent last week, up from 5.87 percent the previous week. Five-year adjustable-rate mortgages averaged 5.92 percent last week, up from 5.89 percent the previous week. One-year adjustable rate mortgages were unchanged last week at 5.48 percent. | Business Foreclosure |
Modest
rise seen