Mortgage rates around the United States rose the week of July 3-9, but remain at a level that should continue to support the buoyant housing market.
In their weekly survey, mortgage giant Freddie Mac reported that for the week ending July 7, rates on 30-year, fixed-rate mortgages increased to 5.62 percent, up from last week's 5.53 percent, which had marked the lowest rate since early April 2004.
"Although mortgage rates ticked up this week, the 30-year mortgage rate -- apart from a brief two-week stint in March -- stayed below 6 percent all year," said Frank Nothaft, Freddie Mac's chief economist. "As a result, the housing industry is likely headed for another record-breaking year," he said.
Freddie Mac, in an updated economic forecast released July 7, predicted house prices, which soared by 11 percent last year, will increase by 7.9 percent this year. That's up from an earlier projection of a 7.7 percent rise for 2005. Next year, home prices should grow by 6.8 percent.
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.20 percent this week, up from 5.12 percent the prior week.
For one-year adjustable rate mortgages, rates rose to 4.33 percent, compared with 4.24 percent the prior week. Rates on five-year hybrid adjustable rate mortgages averaged 5.19 percent, up from 5.06 percent.
The nationwide averages for mortgage rates do not include add-on fees known as points. Thirty-year mortgages carry an average fee of 0.6 point; the other three mortgage categories each had a fee of 0.7 point.
A year ago, 30-year mortgages averaged 6.01 percent, 15-year mortgages were at 5.42 percent and one-year ARMs averaged 4.05 percent. Freddie Mac does not have historical data on the five-year ARM.