Mortgage Rates Rise

McLEAN Va. - (07/15/05) --Home mortgage rates tipped upwardsthis week, continuing their see-saw ride, according to Freddie Mac.The average for the benchmark 30-year mortgage rose to 5.66% thisweek, from 5.62% last week; while the average for the 15-year,fixed-rate loan moved to 5.25%, from 5.20%. ARM rates were mixed,with the average for the one-year ARM inching to 4.39%, from 4.33%last week; and the average for the five-year ARM falling to 5.15%,from 5.19%. Analysts attributed the rate increases of the past twoweeks to financial markets moving to a view that the economy willexpand at a stronger pace this year than previously believed. "Overthe past few weeks, financial markets have been gearing up forgreater growth in the economy, which ultimately leads to higherinflation rates," said Frank Nothaft, chief economist for FreddieMac.