30-year Mortgages Rise Above 6%

Freddie Mac said that 30-year mortgages went over 6% for the first time in 8 months.

Last week they were at 5.95%, and last year at this time, they averaged about 5.40%.

According to a USAToday article,

“The national average for a 15-year fixed-rate mortgage was 5.56% the week ended March 24, up from last week’a 5.47%, Freddie Mac said. A year ago, the 15-year mortgage averaged 4.70%.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.24% this week, with an average 0.8 points, up from 4.20% last week. This time last year, one-year ARMs averaged 3.36%.”

The fact that mortgages have remained as low as they have has been a surprise to economists with the tightening moves adopted by the Federal Open Market Committee.

“Renewed concern over the threat of inflation pushed up long-term mortgage rates, while the most recent FOMC statement caused short-term rates to float upwards,” said Frank Nothaft, Freddie Mac chief economist. “Although mortgage rates have risen these past six weeks, they still remain at very affordable levels.”

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