Rates Hit Multi-Year Highs

The average 30-year fixed mortgage rate rose from 6.24% to 6.37% over the seven-day period ended March 9, representing its highest level since September 2003, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.89% to 6.00%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages increased from 5.97% to 6.03%, and the average rate for one-year Treasury-indexed ARMs climbed from 5.34% to 5.45%, its highest level since September 2001, Freddie Mac reported. 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. "Stronger-than-expected gains in the manufacturing and service industries -- coupled with higher labor costs -- ignited inflation concerns, which led to the rise in mortgage rates this week," said Frank Nothaft, Freddie Mac's chief economist. "Financial markets are beginning to think that the Fed will hike rates three more times this year, instead of two, putting upward pressure on mortgage rates." A year ago, the average 30-year and 15-year fixed rates were 5.85% and 5.38%, respectively, and the average one-year ARM rate was 4.24%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.