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The Honolulu Advertiser
Posted on: Friday, June 16, 2006

30-year mortgage rates inch up to 6.63%

Associated Press

WASHINGTON — Mortgage rates resumed rising this week as financial markets became more convinced the Federal Reserve will boost interest rates further.

Freddie Mac, the mortgage company, reported yesterday that rates on 30-year, fixed-rate mortgages averaged 6.63 percent, up slightly from 6.62 percent last week, and a full percentage point above where they were a year ago.

Rates on 30-year mortgages had fallen last week after hitting a high the previous week of 6.67 percent, the highest level in nearly four years.

The housing sector, which has enjoyed five boom years, is exhibiting numerous signs of slowing under the impact of rising mortgage rates. Analysts are predicting that sales will decline by around 10 percent this year as a gradual increase in mortgage rates cools activity.

Other categories of mortgages also rose this week.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, increased to 6.25 percent, up from 6.23 percent last week.

Rates on one-year adjustable rate mortgages rose to 5.66 percent, up from 5.63 percent last week. Rates on five-year adjustable-rate mortgages climbed to 6.23 percent, up from 6.20 percent last week.

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