Mortgage Rates Move Up

McLEAN. Va. - (01/27/06) – Fixed-rate mortgages moved upslightly this week ending, breaking a string of six weeklydeclines, according to Freddie Mac. The average rate on thebenchmark 30-year fixed-rate mortgage was 6.12%, up from 6.10% aweek earlier; and the 15-year mortgage, also inched up, to 5.70%from 5.67%. ARM rate held steady, with the average for thefive-year ARM holding still at 5.75%, and the average for theone-year ARM up slightly, to 5.20%, from 5.18%. The small rise inmortgage rates this week most likely reflects market expectationsthat the Federal Reserve will once again raise rates next week,according to Frank Nothaft, chief economist for Freddie Mac.“Keep in mind, however, that long-term rates are still belowDecember’s monthly average and continue to fuel the housingmarket. Last’s week, mortgage applications for home purchaseswere stronger that last December’s average,” hesaid.