Mortgage Rate Inched Up

After going down last week, the mortgage rate has inched up again this week.

According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.63% in the week that ended today. This is a little higher than its 6.62% average last week. At this time last year, the loan averaged 5.63%. The 30-year mortgage has not been higher since the week ending June 13, 2002, when it averaged 6.71%. The 15-year fixed rate averaged at 6.25% this week, up from last week's 6.23%. At this time last year this rate was 5.22%.

Rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) also went up this week to 6.23% from 6.20% last week. This rate averaged 5.10% a year ago. The 1-year Treasury-indexed ARMs also moved up this week to 5.66%, from 5.63% last week. At this time in 2005, the ARM averaged 4.25%.

Despite recent rate fluctuations and an underlying upper trend, Freddie Mac still predicts 2006 will be the 3rd strongest year on record for the housing sector.