Long term mortgage rates RISE!!

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.37% (with an average of 0.6 points) for the week ending March 9, 2006. This average is HIGHER from last week; which was at 6.24%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.03% for the week ending March 9, 2006 (with an average of 0.7 points). This average is HIGHER from last week when it averaged 5.97%.

One-year Treasury-indexed ARMs averaged 5.45% this week (with an average of 0.8 points). This average is HIGHER from last week when the average was at 5.34%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “Stronger than expected gains in the manufacturing and service industries – coupled with higher labor costs – ignited inflation concerns, which led to the rise in mortgage rates this week,” “Financial markets are beginning to think that the Fed will hike rates three more times this year, instead of two, putting upward pressure on mortgage rates” “Although the signs are mixed, the housing industry is now beginning to shift into slower gear, and higher mortgage rates will only strengthen that change. However, we see no signs of a housing bubble bursting, but rather a return to a more normal pace of activity”

I suggest you start thinking about refinancing and try to lock on a long-term ARM loan or if you qualify a 30-year fixed loan NOW!!

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March 14th, 2006 · Filed Under Keeping an Eye on the Market

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