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30-year mortgage rates rise to highest level in 7 weeks
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More from BusinessWASHINGTON (AP) — Rates on 30-year mortgages remained above 6 percent, edging up to the highest level in seven weeks and reflecting continued financial market concerns about inflation.
Mortgage giant Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.06 percent this week, up slightly from 6.03 percent last week.
It marked the second week that 30-year rates have been above 6 percent and was the highest level since these mortgages averaged 6.13 percent the week of March 16.
Analysts noted that the Federal Reserve, which cut a key interest rate Wednesday, expressed concerns that the uncertainty over whether inflation will moderate remains at a high level.
While the Fed cut the federal funds rate to 2 percent, the seventh rate reduction since September, it signaled that it was likely to pause to determine whether its previous rate cuts have been enough to boost economic growth in coming months.
"This week saw little change in mortgage rates on mixed news of higher inflation and a weaker housing market," said Frank Nothaft, chief economist at Freddie Mac.
Rates on other types of mortgages were mixed this week.
The average rate on 15-year fixed-rate mortgages, a popular choice for refinancing, dipped to 5.59 percent this week, down from 5.62 percent last week.
Five-year adjustable-rate mortgages rose to 5.73 percent, up from 5.68 percent last week. One-year adjustable-rate mortgages were unchanged at 5.29 percent, the same as last week.
The mortgage rates do not include add-on fees known as points. For 30-, 15- and five-year mortgages, the nationwide average fee was 0.5 point. The average fee for one-year adjustable-rate mortgages was 0.6 point.
A year ago, rates on 30-year mortgages stood at 6.16 percent, 15-year mortgage rates averaged 5.87 percent, five-year adjustable-rate mortgages were 5.87 percent and one-year adjustable-rate mortgages were at 5.42 percent.
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