Rates Still Rising

The average 30-year fixed mortgage rate rose from 6.53% to 6.58% over the seven-day period ended April 27, representing its highest level since June 2002, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 6.17% to 6.21%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages increased from 6.16% to 6.21%, and the average rate for one-year Treasury-indexed ARMs climbed from 5.63% to 5.68%, 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. "Indications of a stronger economy gave rise to an increase in mortgage rates this week," said Frank Nothaft, Freddie Mac's chief economist. "Consumer confidence and existing-home sales unexpectedly rose. Much of this strength is attributed to a healthy labor market, which translates into greater consumer spending. This should support an active housing market over the next few months." A year ago, the average 30-year and 15-year fixed rates were 5.78% and 5.33%, respectively, and the average one-year ARM rate was 4.21%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.