ARM Rates Move Higher

McLEAN, Va. - (07/22/05) -- Mortgage rates climbed this week,with ARM rates moving to three-year highs, according to FreddieMac. The average for the benchmark 30-year, fixed-rate mortgageincreased to 5.73%, from 5.66% last week; while the average for the15-year, fixed-rate loan inched up to 5.32%, from 5.25%. Meantime,the average for the one-year ARM, a benchmark for adjustable-rateloans, moved to a three-year high of 4.42%, up from 4.39% lastweek, and the average for the five-year ARM rose to 5.26%, from5.15%. "As the one-year ARM reaches its highest interest rate levelin almost three years, it comes as no surprise that the ARM share,based on number of applications for a mortgage, has fallennoticeably since the beginning of June," said Frank Nothaft, chiefeconomist at Freddie Mac "And even though long-term rates rose forthe third consecutive week, they still remain below six percent --still relatively close to the phenomenally low rates we experiencedin June of 2003."