Mortgage Rates Keep Climbing

McLEAN, Va. – Long-term mortgage rates continued to rise this week, to their highest level in 10 months, according to Freddie Mac. The average for the 30-year, fix-rate loan rose to 6.53% this week, from 6.42% last week; while the average for the 15-year, fixed-rate mortgage jumped to 6.22%, from 6.12%. ARM rates also climbed, with the average for the five-year ARM inching up to 6.24%, from 6.19%; and the average for the one-year ARM rising to 5.65%, from 5.57% last week. Freddie Mac’s chief economist Frank Nothaft attributed the rising rates to inflationary fears. “Mortgage rates climbed this week owing to market concerns of a tight labor force and wage growth,” said Nothaft. He said that bond markets have also grown concerned about renewed inflation pressures, reflected in a report this week that unit labor costs rose at a 1.8 percent annual rate in the first three months of this year, double the government’s initial estimate.