Fixed Rates Rise

The average 30-year fixed mortgage rate rose from 6.15% to 6.21% for the seven-day period ended May 17, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.87% to 5.92%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages climbed from 5.89% to 5.92%, and the average rate for one-year Treasury-indexed ARMs was unchanged, at 5.48%, Freddie Mac reported. Fees and points averaged 0.4 of a point for fixed-rate mortgages, 0.6 of a point for hybrid ARMs, and 0.7 of a point for one-year ARMs. "Mortgage rates inched up this week following the Federal Open Market Committee statement reiterating that the predominant concern remains the risk that inflation will fail to moderate as expected," said Frank Nothaft, Freddie Mac's chief economist. "However, as long as core inflation continues to trend downward and economic growth remains subpar, it is unlikely that we will see any big movement in mortgage rates." A year ago, the average 30-year and 15-year fixed rates were 6.60% and 6.20%, respectively, and the average hybrid and one-year ARM rates were 6.23% and 5.62%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.