Rates Spike

The average 30-year fixed mortgage rate rose from 6.53% to 6.74% for the seven-day period ended June 14, its highest level since July 2006, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 6.22% to 6.43%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages climbed from 6.24% to 6.37%, and the average rate for one-year Treasury-indexed ARMs rose from 5.65% to 5.75%, Freddie Mac reported. Fees and points averaged 0.4 of a point for fixed-rate mortgages, 0.5 of a point for hybrid ARMs, and 0.7 of a point for one-year ARMs. "Mortgage rates moved sharply upward this week, with rates on 30-year fixed-rate mortgages jumping more than 20 basis points, the largest upward movement in over three years," said Frank Nothaft, Freddie Mac's chief economist. "These moves parallel rising yields on Treasury securities, as concerns about inflation pressures and continuing strength of consumer and business spending have dimmed hopes for an interest rate cut." A year ago, the average 30-year and 15-year fixed rates were 6.63% and 6.25%, respectively, and the average hybrid and one-year ARM rates were 6.23% and 5.66%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.