Interest rates for 30-year, fixed-rate mortgages rose in the United States in the last week, the Federal Home Loan Mortgage Corp. said Thursday.

The 30-year fixed interest rate averaged 6.63 percent with an average 0.6 points for the week ending July 24, compared with 6.26 percent the previous week, Freddie Mac said.

A year ago, 30-year fixed rate mortgages were marginally higher at 6.69 percent.

At 6.18 percent with an average 0.6 points, the 15-year fixed rate average also rose, up from the previous week's average of 5.78 percent.

Market concerns about rising inflation, further weakness in the housing market and greater probability that the Federal Reserve will raise short-term rates this year all combined to push mortgage rates higher this week, said Frank Nothaft, Freddie Mac vice president and chief economist.

Additionally, home prices fell 4.8 percent between May 2007 and 2008, according to the Office of Federal Housing Enterprise Oversight's monthly house price index, Nothaft said. And new construction of one-unit homes fell to ... the slowest pace since January 1991, he said.

Copyright 2008 by United Press International


Publication date: 24 July 2008   

Source: UPI-1-20080724-12205900-bc-us-freddiemac.xml

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