Mortgage Rate Up

Mortgage rates of all types moved up this week mainly due to inflationary fears. The minutes of the most recent FOMC meeting showed that some members were concerned about inflationary pressure. This also caused the bond market yields to rise.

According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.67% in the week that ended today. This is higher than its 6.62% average last week. At this time last year, the loan averaged 5.62%. 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 6.26% this week, up from last week's 6.23%. At this time last year this rate was 5.2%.

However, the rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) went higher this week to 6.26% from 6.21% last week. This rate averaged 5.1% a year ago. The 1-year Treasury-indexed ARMs also moved up this week to 5.68%, from 5.61%. At this time in 2005, the ARM averaged 4.26%. The 1-year ARM is currently at its highest level in nearly five years.