Rates Jump

The average 30-year fixed mortgage rate rose from 6.63% to 6.71% over the seven-day period ended June 22, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 6.25% to 6.36%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages was up from 6.23% to 6.32%, and the average rate for one-year Treasury-indexed ARMs climbed from 5.66% to 5.75%, Freddie Mac reported. Fees and points averaged 0.5 of a point for fixed-rate mortgages, 0.6 of a point for hybrid ARMs, and 0.8 of a point for one-year ARMs. "Financial markets believe that the current rate of inflation is above the Fed's comfort zone, which will lead to more rate hikes in the near future," said Frank Nothaft, Freddie Mac's chief economist. "A rate hike in June is thought to be a sure thing, and what was believed to be a vaguely possible hike in August is now considered to be highly likely. That change in market expectations caused mortgage rates to jump higher this week." A year ago, the average 30-year and 15-year fixed rates were 5.57% and 5.16%, respectively, and the average one-year ARM rate was 4.23%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.