For the first time since March, the average rate on a 30 year fixed mortgage passed the 6% mark. Rates are continuing to rise which will affect homebuyer’s bottom lines.
The rate on a 30 year fixed averaged 6.03 this week up from 5.98% last week. In the adjustable rate market, the average was 4.77% a week ago – today holding at 4.85.
Everyone blames the FED. Treasury yields are being pushed up by the Federal Reserve’s credit tightening campaign and be the threat of worsening inflation from continued high energy prices.
Mortgage rates have been projected to rise gradually over the next year, with the 30 year fixed rate expected to stay at or near 6% through 2005 and rise to 6.4 by 2006. This, according to Frank Nothaft of Freddie Mac.