Mortgage Rates Move Higher
McLEAN, Va. - (09/23/05) -- Long-term mortgage rates, nudged bythe Federal Reserve, which lifted short-term rates an 11th time inthe past18 months, rose this week, according to Freddie Mac. Theaverage for the benchmark 30-year, fixed-rate loan climbed to 5.80%this week, from 5.74% last week; while the average for the 15-year,fixed-rate mortgage increased to 5.37%, from 5.32%. ARM rates alsoinched upwards, as the one-year ARM average moved to 4.48%, from4.46%; and the five-year ARM average rose to 5.31%, from 5.26%."Mortgage rates look like they are back on track where the Fedwants them, which is gradually rising," said Frank Nothaft, chiefeconomist at Freddie Mac. "Freddie Mac's economic forecast callsfor a cooling of the housing market going into next year, andgently rising rates are part of that scenario."