Fixed Rates Inch Higher

The average 30-year fixed mortgage rate inched up from 6.78% to 6.79% over the seven-day period ended July 6, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 6.43% to 6.44%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages was unchanged, at 6.39%, and the average rate for one-year Treasury-indexed ARMs crept up from 5.82% to 5.83%, Freddie Mac reported. Fees and points averaged 0.5 of a point for fixed-rate mortgages, 0.6 of a point for hybrid ARMs, and 0.8 of a point for one-year ARMs. "Since last week's rate increase by the Federal Reserve came as no great surprise, mortgage rates remained nearly unchanged from [those of] the previous week," said Frank Nothaft, Freddie Mac's chief economist. "This is fairly consistent with our economic outlook, which continues to forecast that the interest rate for the 30-year fixed-rate mortgage will gradually drift upward, but should remain under 7% for the year." A year ago, the average 30-year and 15-year fixed rates were 5.62% and 5.20%, respectively, and the average one-year ARM rate was 4.33%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.