Mortgage Rates Move Higher
McLEAN, Va. - (10/08/04) -- Long-term mortgage rates rose thisweek, based on stronger economic signals, according to Freddie Mac.The average for the benchmark 30-year, fixed-rate loan increased to5.92% this week, from 5.72% last week; while the average for the15-year, fixed-rate mortgage moved up to 5.24%, from 5.12%. Theaverage for the one-year ARM also rose to 4.08%, from 3.97% lastweek. "The financial market thinks we've passed the 'soft patch' inthe economy, which would translate into stronger growth in thecoming months," said Amy Cutts, deputy chief economist for FreddieMac. "Stronger growth means a greater threat of inflation and thatmeans interest rates will start to rise in response to thethreat."