Long-Term Rates Rise To Five-MonthHigh
McLEAN, Va. - (09/30/05) -- Fixed mortgage rates climbed againthis week for the third straight week, to their highest level sincemid-April, according to Freddie Mac. The average for the benchmark30-year, fixed-rate mortgage rose to 5.91% this week, from 5.80%last week, its highest since mid-April when it was also 5.91%. Theaverage for the 15-year, fixed-rate loan also moved upwards to5.48%, from 5.37% last week. ARM rates also climbed, with theaverage for the one-year ARM moving to 4.68%, from 4.48% last week;and the average for the five-year ARM rising to 5.44%, from 5.31%.Freddie Mac's chief economist Frank Nothaft said worries aboutinflation and a variety of other economic threats, including theaftereffects of hurricanes Katrina and Rita, also influenced thefinancial markets. "This past week's increase in mortgage ratesreflects anxieties over inflationary pressures, energy priceincreases and slipping consumer confidence," said Nothaft. Takentogether these developments suggest less personal spending duringthe later quarter of the year and additional upward pressure onmortgage rates."