Mortgage rates climbing higher

first_img One-year adjustable rate mortgages or ARMs rose to 4.89 percent. This was up from 4.85 percent last week and pushed the one-year ARM to its highest level since it was at 4.91 percent the week that ended April 26, 2002. Rates on five-year hybrid adjustable rate mortgages averaged 5.59 percent this week, up from 5.57 percent last week. The nationwide averages for mortgage rates do not include add-on fees known as points. The one-year and five-year ARM carried a nationwide average fee of 0.7 point while the 15-year mortgage had an average fee of 0.6 point, and the 30-year carried an average fee of 0.5 point. A year ago, 30-year mortgages averaged 5.69 percent, 15-year mortgages were at 5.07 percent, and one-year ARMs averaged 4.02 percent. Freddie Mac does not have historical data on the five-year ARM, which it began tracking this year. 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! WASHINGTON – Rates on 30-year mortgages rose this week to the highest level in 15 months while one-year adjustable rate mortgages climbed to the highest level in 4 years. Analysts expect rising mortgage rates to cool the booming housing market in coming months. The mortgage company Freddie Mac reported Thursday that the nationwide average for 30-year, fixed-rate mortgages rose this week to 6.10 percent, the highest level since 30-year mortgages were at 6.21 percent in late July 2004. Last week the 30-year mortgage had risen to 6.03 percent, marking the first time it had been above 6 percent since the last two weeks in March. Rates on all other types of mortgages were up as well this week, reflecting growing nervousness in financial markets about inflation pressures triggered by the sharp rise in energy prices after the Gulf Coast hurricanes shut down production. AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREWalnut’s Malik Khouzam voted Southern California Boys Athlete of the Week The nation’s housing market has been booming in 2005 with sales of both new and previously owned homes expected to set records for the fifth consecutive year. However, economists are forecasting that the sales pace will slow next year under the impact of higher mortgage rates. “Higher mortgage rates will inevitably lead to slower housing activity,” said Nariman Behravesh, chief economist at Global Insight, a private forecasting firm in Lexington, Mass. “We are looking for a slowdown in housing – no collapse, no awful scenario.” Most analysts believe that the slowdown in sales will moderate the large run-up in home prices. But economists cautioned that it is difficult to forecast just when the slowdown will occur. They noted a government report Tuesday that construction of new homes and apartments, which had been expected to decline in September, instead rose to an annual rate of 2.11 million units, the fastest pace in seven months. “The housing market has shown amazing resiliency. I believe the market is peaking, but it is at an incredibly high level of activity,” said Mark Zandi, chief economist at Economy.com, another private forecasting firm. Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.65 percent this week, up from 5.62 percent last week. last_img

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