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The Honolulu Advertiser
Posted on: Friday, January 19, 2007

Mortgages continue to creep upward

By Martin Crutsinger
Associated Press

WASHINGTON — Rates on 30-year mortgages rose this week to the highest level in nine weeks as financial markets reacted to a series of more upbeat financial reports.

Mortgage giant Freddie Mac reported yesterday that 30-year, fixed-rate mortgages averaged 6.23 percent this week, up from 6.21 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 various economic reports showing that the economy was doing better at the end of the year than had been expected, lowering chances that the Federal Reserve will move any time soon to cut interest rates.

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 to 5.98 percent, compared with 5.96 percent last week.

Five-year adjustable-rate mortgages rose to 6.04 percent, up from 6.03 percent. One-year ARMs rose to 5.51 percent, up from 5.44 percent last week.

The mortgage rates do not include add-on fees known as points. Thirty-year, 15-year and five-year mortgages each carried a nationwide average fee of 0.4 point. One-year adjustable-rate mortgages carried a fee of 0.5 point.

A year ago, rates on 30-year mortgages stood at 6.10 percent, while 15-year mortgages were at 5.67 percent, five-year ARMs averaged 5.75 percent and one-year ARMs were at 5.18 percent.

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