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The Honolulu Advertiser
Posted on: Friday, January 12, 2007

Mortgages rise with jobs report

By Martin Crutsinger
Associated Press

WASHINGTON — Rates on 30-year mortgages rose this week to the highest level since mid-November after a better-than-expected employment report renewed inflation worries in financial markets.

Mortgage giant Freddie Mac reported yesterday that 30-year, fixed-rate mortgages averaged 6.21 percent this week, up from 6.18 percent last week. It was the highest level since 30-year mortgages stood at 6.24 percent the week of Nov. 16.

Analysts said that financial markets were reacting to a stronger reading on employment with 167,000 jobs created in December, the best showing in three months.

The Freddie Mac survey showed that other types of mortgage rates experienced slight increases this week.

Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, edged up slightly to 5.96 percent, compared with 5.94 percent last week.

Five-year adjustable-rate mortgages rose to 6.03 percent, up from 6.02 percent, while one-year ARMs rose to 5.44 percent, up from 5.42 percent last week.

The mortgage rates do not include add-on fees known as points. Thirty-year and 15-year mortgages each carried a nationwide average fee of 0.4 point. Five-year and one-year ARMs each carried a fee of 0.5 point.

A year ago, rates on 30-year mortgages stood at 6.15 percent, while 15-year mortgages were at 5.71 percent, five-year ARMs averaged 5.76 percent and one-year ARMs were at 5.15 percent.

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