Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.53 percent this week, the highest level in 10 months amid strong employment growth and comments from Federal Reserve Chairman Ben Bernanke that signaled lingering inflation worries.
Rates on the 30 year product rose from 6.42 last week, and came close to hitting the previous high of 6.55 percent, the average during the week of August 10, 2006.
Analysts attributed the rise in rates to the economic strength outside of the housing market, citing last week’s report that the economy created 157,000 jobs in May and unit labor costs rose at a 1.8 percent annual rate in the first quarter of the year, twice the government’s preliminary estimate.
Comments from the Fed signaled no change in the Federal Funds rate, which many had expected would drop at some point this summer.
Freddie Mac also reported an increase in rates on all other products, including the 15 year fixed, and the 1 and 5 year adjustable-rate mortgages.
The 15 year fixed rose from 6.12 to 6.22 this week, while the 1 year rose to 5.65 percent from 5.57, and the 5 year adjustable rose to 6.24 percent, up from 6.19 percent last week.
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