This week marked the eighth mortgage rate increase in nine weeks, setting the highest level in almost four years.
The average 30-year, fixe-rate mortgage was up to 6.62% from 6.60% last week, according to Fredde Mac's weekly report. This level of interest was last seen in the week of June 20, 2002, when 30-year mortgages averaged 6.63%.
A year ago this week, 30-year mortgages averaged 5.65%.
The rates for 15-year, fixed-rate mortgages averaged 6.23%, up from 6.20 last week. The 15-year is a popular choice for refinancing a home mortgage. One year ago, it averaged 5.21%.
Rates of one-year adjustable-rate mortgages were down this week, averaging 5.61%, a change of 0.01%. Five-year adjustable-rate hybrid mortgages were also slightly down, falling to 6.21% from 6.23% the week prior.
Last year, the one-year ARM averaged 4.21% and the five-year hybrid averaged 5.07%.
"Currently, mortgage rates are roughly half a percentage point higher than they were at the start of the year, which has led to some moderation in the housing market," said Frank Nothaft, Freddie Mac vice president and chief economist."
"Indeed, in the first quarter of 2006, the housing industry directly accounted for only seven percent of real GDP, compared to 19% in the fourth quarter of 2005," he explained. "Total housing starts for April were the weakest since November 2004, and although new home sales in April were the strongest this year, the number of homes for sale hit a record high. Meanwhile, existing home sales declined an expected two percent, further evidence of an easing in the pace of housing."
Martin Lukac(http://www.MartinLukac.com), represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
