Mortgage Rates Continue To ClimbHigher
McLEAN, Va. - (03/25/05) -- Long-term mortgage rates rose thisweek for the sixth week in a row, with the average for thebenchmark 30-year loan hitting the 6% mark for the first time ineight months, according to Freddie Mac. The average for the30-year, fixed-rate mortgage inched up to 6.01%, from 5.95% lastweek; while the average for the 15-year, fixed-rate loan moved to5.56%, from 5.47%. "Renewed concern over the threat of inflationpushed up long-term mortgage rates, while the most recent Fedstatement caused short-term rates to float upwards," said FrankNothaft, Freddie Mac's chief economist, referring to this week's 25basis point increase in the overnight Fed Funds rate. ARM ratesalso moved upwards, with the average for the five-year ARM risingto 5.35%, from 5.31% last week; and the average for the one-yearARM moving to 4.24%, from 4.20%.