Housing & Mortgage

Mortgage rates inched up over the week, following news of a jump in consumer spending in November. Financial markets were concerned that stronger spending could keep the fear of inflation alive and the Federal Reserve could hike the short term interest rate in 2007. Such worries were further compounded by the releases of new- and existing-home sales for November, which both exceeded market forecasts and caused Treasury bond yields to continue to rise.

According to the report released by the National Association of Realtors, sales of U.S. existing homes rose a surprising 0.6% in November, to a seasonally adjusted annual rate of 6.28 million. Inventories of unsold homes fell 1%, to 3.82 million, representing a 7.3-month supply. The median sales price fell, year on year, by 3.1% to $218,000. Read the full report.

According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.18% during the week ending Dec. 28, up from its 6.13% average last week. In 2006, the lowest point for the mortgage was seen on Jan. 19, when it hit 6.1%. The rate was 6.22% one year back. The 15-year fixed rate averaged at 5.93% this week -- up from last week's 5.89%. At this time last year this rate was 5.76%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.98%, up from 5.96% average last week. The hybrid averaged 5.79% a year ago. One-year Treasury-indexed ARMs averaged 5.47%, up from 5.44%. This rate averaged 5.15% a year ago.