Mortgage Rate Climbing Uphill

According to Freddie Mac's weekly report, mortgage rate reached the highest level in more than 31/2 years this week. Finally this may signal a real downfall in real estate market.

The 30-year fixed rate was at a national average 6.49%, up from 6.43% a week earlier and the highest it has been since July 12, 2002. Last year at this time the average rate was 5.91%
The average on the 15-year mortgage, a popular refinancing choice, rose to 6.14% from 6.10% a week ago. The 15-year has not been higher since June 13, 2002. One year back the 15-year loan stood at 5.46%.

Adjustable-rate mortgages (ARM) also edged higher in the week ending Thursday. The 5-year, Treasury-indexed ARM averaged 6.13%, up from 6.11%. A year ago it was 5.31%. The 1-year, Treasury-indexed ARM hit 5.61%, up from 5.57% a week ago and from 4.30% a year ago.