Mortgage Rates Climb Higher

McLEAN, Va. – Both long- and short-term mortgage rates rose again this week, to their highest in almost three months, according to Freddie Mac. The average for the 30-year, fixed-rate mortgage increased to 6.34% this week, from 6.24% last week; and the average for the 15-year, fixed-rate mortgage moved to 6.06%, from 5.98%. ARM rates inched up, with the average for the one-year ARM rising to 5.54%, from 5.49% last week; and the average for the five-year ARM moving to 6.04%, from 6.00% last week. Frank Nothaft, chief economist for Freddie Mac, attributed the uptick in rates to rosy economic indicators. “The strong 3.5% annualized growth in the economy over the final quarter of 2006 occurred while inflation moderated. Solid economic growth and tepid inflation contributed to the Fed's decision to leave the target short-term interest rate unchanged, said Nothaft. The Federal Reserve also referred to tentative signs of stabilization in the housing market in its Wednesday statement, he added