Mortgage Rates Continue Upwards

This week marked the eighth increase in mortgage interest rates in nine weeks, marking the highest level in nearly four years. The average 30-year fixed mortgage rate rose to 6.62% from 6.60% last week, according to Freddie Mac's weekly report This level of interest has been for the last week of June 20, 2002 when 30-year mortgages averaged 6.63%. A year ago this week, 30 year mortgage averaged 5.65%. Rates of 15-year fixed mortgage rate averaged 6.23%, above 6.20 weeks ago. The 15 years is a popular choice for refinancing of residential mortgages. A year ago, it averaged 5.21%. Prices found one year adjustable mortgages were at this week averaged 5.61%, a variation of 0.01%. Five-year mortgage rates hybrids were also down slightly, falling to 6.21% from 6.23% the previous week. Last year, one-year ARM averaged 4.21% and five-year average of 5.07% hybrid. "Currently, mortgage rates are about half a percentage point higher than they were earlier this year, which led to some moderation in the housing market," said Frank Nothaft , Freddie Mac vice president and chief economist ". In fact, in the first quarter of 2006, the housing industry directly accounted for only seven per cent of GDP, compared to 19% in the fourth quarter of 2005, "he said." Total housing starts in April were the lowest since November 2004, although sales of new homes in April were the strongest this year, the number of homes for sale hit a record high. Meanwhile, home sales declined an expected two percent, further evidence of moderation in the pace of housing. "Martin Lukac (http://www.MartinLukac.com) represents http://www.RateEmpire.com and http:// www.1AmericanFinancial.com a web of finance, real estate company specializing in the mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find home low interest rate mortgages from hundreds of mortgage companies!