Long-Term Mortgages Rates Keep Rising

McLEAN, Va. – Long-term mortgage rates rose again this week, for the fourth time in the past five weeks, according to Freddie Mac. The average for the benchmark 30-year, fixed-rate loan inched up to 6.21% this week, from 6.18% last week; while the average for the 15-year, fixed-rate mortgage rose slightly to 5.96%, form 5.94%. ARM rates also crept up, with the average for the one-year rising to 5.44%, from 5.42%; and the average for the five-year ARM moving to 5.96%, from 5.94%. Frank Nothaft, chief economist for Freddie Mac, predicting a moderating of long-term rates this year. “We expect rates on 30-year fixed-rate mortgages to remain below 6.5% in the coming year and for adjustable-rate mortgage rates to be less attractive to borrowers in 2007 than they have been in recent years," Nothaft said. "We now expect the ARM share of home purchase mortgages in 2007 to fall below 20% for the first time since 2003."