Rates Continue to Climb

The average 30-year fixed mortgage rate rose to 5.89% for the week ending April 16 from 5.79% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.12% to 5.23%, and the average rate for one-year Treasury-indexed ARMs climbed from 3.65% to 3.69%. Fees and points averaged 0.6 of a point for all three mortgage categories. "With economic news continuing to point to a growing economy, the financial markets are beginning to think about the likelihood of inflation again," said Frank Nothaft, Freddie Mac's chief economist. "Not only that, but jobs creation, retail sales, and consumer prices jumped in March, which buoyed market speculation that the Federal Reserve Board will raise rates sooner than expected. Add all that to the mix, and mortgage rates were bound to rise this week." A year ago, the average 30-year and 15-year fixed rates were 5.82% and 5.12%, respectively, and the average one-year ARM rate was 3.79%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.