McLEAN, Va. – Mortgage rates spiked across the board this week as investors worried about the rising rate of inflation, according to Freddie Mac.
The average for the 30-year, fixed-rate loan climbed all the way to 6.63% this week, from 6.26% last week; while the average for the 15-year, fixed-rate mortgage surged to 6.18%, from 5.78% last week.
ARM rates also climbed significantly, with the average for the five-year ARM rising to 6.16%, from 5.80%; and the average for the one-year ARM moving to 5.49%, from 5.10%.
“Market concerns about rising inflation, further weakness in the housing market and greater probability that the Federal Reserve will raise short-term rates this year all combined to push mortgage rates higher this week," said Frank Nothaft, chief economist for Freddie Mac.
“Some of the key drivers to these concerns were consumer prices jumping 1.1% in June – the largest increase since September 2005 on a year-over-year basis – coupled with consumer prices growing at a 5% clip, the strongest since February 1991,” Nothaft said.
