Mortgage rates moved slightly higher this week as rising inflationary concerns made many economists question whether the Fed might raise short-term interest rates in the next few months.
That sentiment caused interest rates to rise on nearly all mortgage programs during the week ending May 29, according to mortgage financier Freddie Mac’s latest weekly survey.
The benchmark 30-year fixed-rate mortgage climbed 10 basis points to 6.08 percent this week, the highest level in more than two months.
The 15-year also worsened, rising to 5.66 percent from 5.55 percent a week earlier.
Adjustable-rate mortgages faired better than their fixed brethren, with the average five-year ARM clocking in at 5.62 percent, up just one basis point from last week.
The one-year ARM performed even better, shedding two basis points to end the week at 5.22 percent.
A year ago, the 30-year averaged 6.42 percent, the 15-year averaged 6.12 percent, the five-year 6.19 percent, and the one-year stood at 5.57 percent.
Average fees on the 30-year, 15-year, and one-year were 0.6 percent, while the five-year had an average fee of a half a point.
Most economists expect mortgage rates to hover around their current levels in the near term as ongoing housing woes continue to offset inflationary concerns.
The weekly survey, conducted since the early 70s, bases the data on mortgages at or below the conforming loan amount with an LTV of 80 percent.
(photo: borkurdotnet)
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