Mortgage Rates Keep Rising
McLEAN, Va. - (11/04/05) -- Long-term mortgage rates rose againthis week to their highest level in more than a year, according toFreddie Mac. The average for the benchmark 30-year, fixed-rate loanclimbed from 6.15% last week, to 6.31%; while the average for the15-year, fixed-rate mortgage increased from 5.69% to 5.85%. ARMrates also moved higher, with the average for the one-year ARMinching up to 5.09%, from 4.91% last week; and the average for thefive-year ARM going from 5.63% to 5.76%. The rising rates continuedto reflect an expanding economy, according to Frank Nothaft, chiefeconomist for Freddie Mac. "Based on preliminary GDP figures forthe third quarter, the economy is expanding faster than had beenexpected," said Nothaft. "Originally, the markets had loweredeconomic expectations for the third quarter because of the impactof the hurricanes. So the news of an economy growing at such astrong pace gave financial markets a jolt and added to the impetusthat caused mortgage rates to rise again this week."