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The Honolulu Advertiser
Posted on: Friday, November 10, 2006

Home rates rise on inflation worries

 •  Hawai'i Real Estate Report

By Martin Crutsinger
Associated Press

WASHINGTON — Rates on 30-year mortgages edged up slightly this week, reflecting market worries about inflation.

Mortgage-giant Freddie Mac reported yesterday that 30-year, fixed-rate mortgages rose to 6.33 percent, up from 6.31 percent last week. Rates have exhibited a seesaw pattern of falling one week and then rising the next week for the past 1 1/2 months.

Analysts attributed the latest increase to last week's unemployment report, which raised worries in financial markets about inflation pressures coming from a tight labor market with a jobless rate at 4.4 percent.

The Freddie Mac mortgage survey showed that rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, averaged 6.04 percent this week, up from 6.02 percent last week.

Rates on one-year adjustable-rate mortgages edged up to 5.55 percent, compared to 5.53 percent last week.

Five-year adjustable-rate mortgages rose to 6.08 percent, up from 6.05 percent last week.

The mortgage rates do not include add-on fees known as points. The 30-year and 15-year mortgages each carried an average nationwide fee of 0.6 point.