Fixed Rates Rise

The average 30-year fixed mortgage rate rose from 6.26% to 6.32% over the seven-day period ended Dec. 8, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.81% to 5.87%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages increased from 5.76% to 5.78%, and the average rate for one-year Treasury-indexed ARMs was unchanged, at 5.16%. Fees and points averaged 0.6 of a point for fixed-rate mortgages, 0.7 of a point for hybrid ARMs, and 0.8 of a point for one-year ARMs. "Looking ahead, as mortgage rates rise, housing activity will ease somewhat," said Frank Nothaft, Freddie Mac's chief economist. "So although 2006 will not be another record-setting year, it will likely beat the previous record for home sales and new construction set in 2003." A year ago, the average 30-year and 15-year fixed rates were 5.71% and 5.14%, respectively, and the average one-year ARM rate was 4.15%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.