Fixed Rates Inch Up

The average 30-year fixed mortgage rate rose from 6.36% to 6.37% over the seven-day period ended Nov. 17, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate increased from 5.89% to 5.90%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages rose from 5.81% to 5.86%, and the average rate for one-year Treasury-indexed ARMs climbed from 5.12% to 5.20%. Fees and points averaged 0.6 of a point for all four mortgage categories. "Recently released inflation indicators -- the Consumer Price Index and Producer Price Index -- brought down long-term bond yields, flattening out the yield curve," said Frank Nothaft, Freddie Mac's chief economist. "Consequently, the difference between the 30-year fixed-rate mortgage and the one-year ARM rate is the narrowest it has been since November of 2001. This will make the one-year ARM product much less attractive to borrowers." A year ago, the average 30-year and 15-year fixed rates were 5.74% and 5.15%, respectively, and the average one-year ARM rate was 4.17%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.