Rates Still Rising

The average 30-year fixed mortgage rate rose from 6.71% to 6.78% over the seven-day period ended June 29, its highest level since May 2002, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 6.36% to 6.43%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages was up from 6.32% to 6.39%, and the average rate for one-year Treasury-indexed ARMs climbed from 5.75% to 5.82%, Freddie Mac reported. (The 15-year rate was the highest since April 2002, and the one-year ARM rate was the highest since June 2001, Freddie Mac said.) Fees and points averaged 0.5 of a point for fixed-rate mortgages and hybrid ARMs and 0.8 of a point for one-year ARMs. "Financial markets continue to expect more rate hikes by the [Federal Reserve Board] over the next six months, which has added upward pressure on mortgage rates," said Frank Nothaft, Freddie Mac's chief economist. "With higher interest rates, the housing market has begun a gradual and orderly reversion toward historical norms." A year ago, the average 30-year and 15-year fixed rates were 5.62% and 5.20%, respectively, and the average one-year ARM rate was 4.33%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.