U.S. mortgage rates rise again

Mclean, Va. -- Mortgage rates rose this week as a 30-year, fixed-rate mortgage averaged 6.74 percent, up from 6.53 percent last week, U.S. mortgage lender Freddie Mac said.

Last year at this time, a 30-year, fixed-rate mortgage averaged 6.63 percent. The 30-year rate has not been higher since the week ending July 20, 2006, when it averaged 6.80 percent, Freddie Mac said in a news release.

The popular 15-year, fixed-rate mortgage averaged 6.43 percent, up from last week when it averaged 6.22 percent, Freddie Mac said, based on its Primary Mortgage Market Survey.

Five-year, adjustable-rate mortgages averaged 6.37 percent while one-year ARMs averaged 5.75 percent.

Frank Nothaft, Freddie Mac vice president and chief economist, said the upward shift parallels rising yields on U.S. Treasury securities "as concerns about inflation pressures and continuing strength of consumer and business spending have dimmed hopes for an interest rate cut."

"Higher mortgage rates may weigh on the housing market's gradual recovery," Nothaft said. "While demand appears to have stabilized, inventories of new homes remain high, putting downward pressure on construction and home prices."

Copyright 2007 by United Press International.