Long-Term Mortgage Rates Drift Up

The average rate on 30-year, fixed-rate mortgages rose to 6.60% with an average of .5 points for the week of May 18, according to Freddie Mac.That was two basis points higher than a week earlier. But it was also the highest weekly average seen since June of 2002, Freddie Mac noted. The average rate on 15-year fixed-rate mortgages rose three basis points from a week earlier to 6.20%. On hybrid, Five-year Treasury-indexed adjustable-rate mortgages, the average rate rose just one basis point to an average of 6.23%. Freddie Mac chief economist Frank Nothaft said that financial markets are still trying to decipher recent economic data. "The current debate is between rising inflation and slower consumer spending. Until the market finds out which influence will be the strongest, mortgage rates should continue to fluctuate as they have the last couple weeks."