30-Year Rate Breaks 6%

The average 30-year fixed mortgage rate rose to 6.02% for the week ending Dec. 5 from 5.89% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.22% to 5.36%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages was unchanged, at 3.77%. Fees and points averaged 0.6 points for all three mortgage categories. "Financial markets are speculating about what the Federal Reserve Board will say when it meets [the week of Dec. 7]," said Frank Nothaft, Freddie Mac's chief economist. "And it looks like the market is taking bets that the Fed will soften its language and raise rates sooner rather than later. As a result, bond yields drifted higher, and with them went mortgage rates." A year ago, the average 30-year and 15-year fixed rates were 6.19% and 5.60%, respectively, and the average one-year ARM rate was 4.21%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.