Fixed Rates Rise Again

The average 30-year fixed mortgage rate rose from 6.37% to 6.42% for the seven-day period ended May 31, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 6.06% to 6.12%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages climbed from 6.02% to 6.19%, while the average rate for one-year Treasury-indexed ARMs fell from 5.64% to 5.57%, Freddie Mac reported. Fees and points averaged 0.4 of a point for fixed-rate mortgages, 0.5 of a point for hybrid ARMs, and 0.6 of a point for one-year ARMs. "Interest rates on fixed-rate mortgages increased further this week following strong growth in orders for durable goods," said Frank Nothaft, Freddie Mac's chief economist. "Recent reports have indicated that economic growth outside of the housing market remains robust, with a healthy consumer sector and improving business spending." A year ago, the average 30-year and 15-year fixed rates were 6.67% and 6.26%, respectively, and the average hybrid and one-year ARM rates were 6.26% and 5.68%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.