Mortgage Rates Climb To Three-YearHigh
McLEAN, Va. - (03/10/06) -- The 30-year fixed-rate mortgage rosethis week to the highest level in more than three and a-half years,according to Freddie Mac. The average for the 30-year, fixed movedto 6.37% this week, from 6.24% last week, its highest since August2, 2002. The average for the 15-year, fixed-rate loan climbed to6%, from 5.89% last week. ARM rates also moved higher, with theaverage for the one-year ARM rising to 5.45%, from 5.34%; and theaverage for the five-year ARM moving to 6.03%, from 5.97%.'Stronger than expected gains in the manufacturing and serviceindustries -- coupled with higher labor costs -- ignited inflationconcerns, which led to the rise in mortgage rates this week,' saidFrank Nothaft, Freddie Mac's chief economist. 'Financial marketsare beginning to think that the Fed will hike rates three moretimes this year, instead of two, putting upward pressure onmortgage rates'