Mortgage Rates Inch Up

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WASHINGTON – Home loan rates rose this week for the second week in a row, but the average rate on the 30-year loan remained below 5%, according to Freddie Mac.

The average for the benchmark 30-year loan inched up to 4.86%, from 4.81% last week; while the average for the 15-year mortgage rose to 4.09% from 4.04%.

ARM rates also moved higher, with the average for the five-year ARM rising to 3.70%, from 3.62% last week; and the average for the one-year ARM increasing to 3.26%, from 3.21%.

“Low interest rates are holding relatively steady due to low inflation,” said Frank Nothaft, chief economist for Freddie Mac. “Inflation as measured by the 12-month growth in core price index for consumer spending ... is hovering near the lowest pace since 1960, when this data series began.”

 

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