Fixed, ARM Mortgage Rates Holding Steady

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Mortgage rates held their ground for the week ending July 7, shortened by the Independence Day holiday, at four-year highs.

The average for the 30-year, fixed-rate mortgage rose a single basis point, to 6.79%; with the average for the 15-year, fixed-rate loan also rising a single bp, to 6.44% this week, according to Freddie Mac.

ARM rates also held steady, with both the one-year ARM average of 5.82%, and the five-year ARM average of 5.39%, unchanged from last week.

"Since last week's rate increase by the Federal Reserve came as no great surprise, mortgage rates remained nearly unchanged from the previous week," said Frank Nothaft, chief economist for Freddie Mac. This is fairly consistent with our economic outlook, which continues to forecast that the interest rate for the 30-year fixed-rate mortgage will gradually drift upward but should remain under 7% for the year."

Ed Roberts can be reached at robertscuj (c) 2006 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.

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