Mortgage Rates Creep Higher
McLEAN, Va. - (08/05/05) -- Long-term mortgage rates movedhigher this week, for the fourth week in a row, according toFreddie Mac. He average for the benchmark 30-year, fixed-rate loanclimbed to 5.82% this week, from 5.77% last week; while the averagefor the 15-year, fixed-rate loan rose to 5.38%, from 5.34%. ARMrates also inched upwards, with the average for the one-year ARMrising to 4.47%, from 4.46% last week; and the average for thefive-year ARM going to 5.30%, from 5.27% last week. "Long-termmortgage rates will more than likely rise over the next few months,albeit modestly compared to shorter-term rates," said FrankNothaft, chief economist at Freddie Mac. "As the Federal Reserveincreases its targeted overnight-lending rate, home-equity loanswill become more costly. This is because many home-equity loans aretied to the prime rate, which generally follows every Fed ratehike. Currently, the prime rate is 6.25 percent and is expected bymany to rise to 6.50 percent next week,"