Fixed Rates Rise

The average 30-year fixed mortgage rate rose from 5.62% to 5.66% over the seven-day period ended July 14, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate increased from 5.20% to 5.25%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages fell from 5.19% to 5.15%, and the average rate for one-year Treasury-indexed ARMs climbed from 4.33% to 4.39%. Fees and points averaged 0.6 of a point for fixed-rate mortgages and 0.7 of a point for ARMs. "Over the past few weeks, financial markets have been gearing up for greater growth in the economy, which ultimately leads to higher inflation rates," said Frank Nothaft, Freddie Mac's chief economist. "As a result, mortgage rates increased for the second straight week. Interest rates for 30-year fixed-rate mortgages now match those set in mid-May, but are still below January's monthly average." A year ago, the average 30-year and 15-year fixed rates were 6.00% and 5.40%, respectively, and the average one-year ARM rate was 4.02%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.