Rates Rise

The average 30-year fixed mortgage rate rose from 6.74% to 6.80% over the seven-day period ended July 20, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 6.37% to 6.40%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages climbed from 6.33% to 6.36%, and the average rate for one-year Treasury-indexed ARMs increased from 5.75% to 5.80%, Freddie Mac reported. Fees and points averaged 0.5 of a point for 30-year fixed-rate mortgages and hybrid ARMs, 0.4 of a point for 15-year fixed-rate mortgages, and 0.6 of a point for one-year ARMs. "Financial markets were a bit jittery after core Consumer Price Index figures for June were released that indicated inflation might be a potential threat," said Frank Nothaft, Freddie Mac's chief economist. "If this were the case, the Fed would be more inclined to continue to raise rates this year. .... However, [Federal Reserve Board Chairman Ben] Bernanke, in his semiannual speech to Congress, hinted that another rise in overnight lending rates might not be imminent, and financial markets breathed a collective sigh of relief, which should be reflected in the results of next week's survey." A year ago, the average 30-year and 15-year fixed rates were 5.73% and 5.32%, respectively, and the average one-year ARM rate was 4.42%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.