Posted on: Friday, March 25, 2005

30-year mortgage rates top 6%, up for 6th week

By Jeannine Aversa
Associated Press

WASHINGTON — Rates on 30-year mortgages this week climbed to their highest point since late July, rising just above the 6 percent mark.

Mortgage giant Freddie Mac, in its weekly survey of mortgage rates nationwide, reported yesterday that rates on 30-year, fixed-rate mortgages averaged 6.01 percent for the week ending yesterday.

This week's rate was up from 5.95 percent the previous week and was the highest since the week ending July 27, when rates averaged 6.08 percent. It marked the sixth week in a row that rates on 30-year mortgages rose.

Analysts said the pickup reflects concerns in financial markets about inflation.

"Renewed concern over the threat of inflation pushed up long-term mortgage rates," said Frank Nothaft, Freddie Mac's chief economist.

Even with the recent increases, mortgages rates are still low by historical standards.

"Although mortgage rates have risen these past six weeks, they still remain at very affordable levels," Nothaft said.

Rates on 15-year, fixed-rate mortgages, a popular option for refinancing, rose to 5.56 percent this week, up from 5.47 percent last week.

Five-year hybrid adjustable rate mortgages averaged 5.35 percent this week, up from 5.31 percent last week. These hybrid mortgages have a fixed-rate for five years and then adjust each year after that.

Rates on one-year, adjustable-rate mortgages increased to 4.24 percent this week, compared with 4.20 percent last week.

The nationwide averages for mortgage rates do not include add-on fees known as points. Thirty-year mortgages, 15-year mortgages and five-year ARMs each carried a fee of 0.7 point. The one-year ARM had a financing fee of 0.8 point.

A year ago, 30-year mortgages averaged 5.40 percent, 15-year mortgages were at 4.70 percent and one-year ARMs averaged 3.36 percent. Freddie Mac does not have historical data on the five-year ARM because it began tracking that mortgage this year.