Mortgage Rates Up After 4 Weeks

Concern for inflation boosted mortgage rates during the past week, hitting adjustable-rate mortgages especially hard and narrowing the gap between ARMs and fixed-rate mortgage rates. The concern has put some upward pressure on bond yields, which translated into higher interest and mortgage rates this week. The rate had gone down in 10 out of 11 weeks before this week.

According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.37% in the week that ended today -- up from its 6.30% average last week. At this time last year, the loan averaged 6.03%. The 15-year fixed rate averaged at 6.06% this week, again an increase from last week's 5.98%. At this time last year this rate was 5.62%.

Rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged at 6.10% increasing from last week's 6.00%. This rate averaged 5.57% a year ago. The 1-year Treasury-indexed ARMs also moved up this week to 5.56% from last week's rate of 5.46%. At this time in 2005, the 1-year ARM averaged only 4.85%.