McLEAN, Va. – Long-term mortgage rates this week jumped to their highest levels in almost eight months, according to Freddie Mac.
The average for the 30-year, fixed-rate loan climbed to 6.32% this week, from 6.09% last week. It is the highest since it stood at 6.33% last October. The average for the 15-year, fixed-rate mortgage rose all the way to 5.93%, from 5.65%.
Short-term rates also moved higher, with the average for the five-year ARM rising to 5.70% this week, from 5.51% last week; and the average for the one-year ARM inching up to 5.09%, from 5.06%.
“Mortgage rates jumped this week after a number of Federal Reserve officials, most notably Chairman (Ben) Bernanke and Vice Chair (Donald) Kohn, expressed concern over a threat of inflation,” said Frank Nothaft, chief economist for Freddie Mac. “This led some market participants to believe that the Fed will raise rates more aggressively over the year than previously thought.”
