Mortgage Rates Spike

McLEAN, Va. – Mortgage rates rose higher this week, after falling the previous three weeks, according to Freddie Mac. The average for the 30-year, fixed-rate loan climbed to 6.73% this week, from 6.63% last week; while the average for the 15-year, fixed-rate loan rose to 6.39%, from 6.30%. ARM rates were mixed, with the average for the five-year ARM moving up to 6.35%, from 6.29% last week; and the average for the one-year ARM holding steady at 5.71%. Frank Nothaft, chief economist for Freddie Mac, said he expects rates to remain steady around the current levels for the remainder of the year. "Freddie Mac expects weakness in the housing market to persist in the second half of the year, with 2007 total home sales and housing starts hitting five-year lows," he said.