Mortgage rates continued to inch upwards as inflationary concerns gathered strength, according to the latest weekly survey from mortgage financier Freddie Mac.
“Fixed-rate mortgage rates continued to climb this week to the highest point in nearly nine months following the release of May’s consumer and producer price indexes, both of which showed stronger levels of inflation,” said Frank Nothaft, Freddie Mac chief economist.
“Additionally, consumer prices rose 0.6% last month, the most since November 2007, and traders began to fully price in a Federal Reserve rate hike by the end of September, based on the federal funds futures market,” he added.
The traditional 30-year fixed-rate mortgage climbed to 6.42 percent for the week ending June 19, up from 6.32 percent a week earlier, the highest level since early September.
The 15-year fixed performed similarly, rising to 6.02 percent from 5.93 percent, its highest point since weeks before Halloween.
Adjustable-rate mortgages fared even worse, with the average five-year ARM jumping to 5.89 percent from 5.70 percent, while the one-year ARM averaged 5.19 percent, up from 5.09 percent last week.
A year ago, the 30-year averaged 6.69 percent, the 15-year 6.37 percent, the five-year 6.31 percent, and the one-year 5.66 percent.
Despite all the recent upward movement, interest rates are still below year-ago levels, which are still historically low.
Freddie Mac’s weekly survey, conducted since the year ‘71, relies on data from mortgages at or below the conforming loan amount with an LTV of 80 percent.
(photo: aoifemac)
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