Rates Rise

The average 30-year fixed mortgage rate rose from 6.30% to 6.37% over the seven-day period ended Oct. 12, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.98% to 6.06%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages rose from 6.00% to 6.10%, and the average rate for one-year Treasury-indexed ARMs increased from 5.46% to 5.56%, 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 0.7 of a point for one-year ARMs. "Renewed concern that inflation is still an issue put some upward pressure on bond yields, which generally translates into higher interest and mortgage rates," said Frank Nothaft, Freddie Mac's chief economist. "ARM rates especially felt the weight of increased inflation fears, narrowing the gap between ARMs and fixed-rate mortgage rates." A year ago, the average 30-year and 15-year fixed rates were 6.03% and 5.62%, respectively, and the average hybrid and one-year ARM rates were 5.57% and 4.85%, respectively, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.