Long-Term Mortgage Rates Continue ToRise
McLEAN, Va. - (10/14/05) -- Long-term mortgage rates continuedmoved higher this week for the fourth week in a row, with theaverage for the benchmark 30-year mortgage climbing above 6% forthe first time since March, according to Freddie Mac. The averagefor the 30-year rate increased to 6.03% this week, from 5.98% lastweek; while the average for the 15-year, fixed-rate loan rose to5.62%, from 5.54%. "In spite of the job losses caused by hurricanesKatrina and Rita, the employment report was better than had beenexpected," said Frank Nothaft, chief economist for Freddie Mac."This indicates that economic growth is likely to accelerate in2006. That acceleration of growth, coupled with the specter ofhigher energy costs, will translate into higher long-term mortgagerates in the coming months." ARM rates moved higher, too, with theaverage for the one-year ARM climbing to 4.85%, from 4.77%; and theaverage for the five-year ARM rising to 5.57%, from5.48%.