WASHINGTON | Rates on 30-year mortgages edged up this week to the highest level since March as investors worried about inflation threats.
The mortgage company Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.09 percent, compared with 6.08 percent last week. It was the highest mark for 30-year mortgages in 12 weeks since averaging 6.13 percent the week of March 16.
Analysts cited concerns in financial markets about what the Federal Reserve might do to confront increased inflationary pressures.
Federal Reserve Chairman Ben Bernanke expressed new concerns this week about inflation. The markets interpreted his comments as a signal the central bank will not cut interest rates further because of fears that inflation could spiral out of control.
The Fed cut rates seven times from September through April in an aggressive campaign to keep the economy from sliding into a deep recession. Now financial markets are beginning to consider the possibility that the Fed's next move will be to start raising rates, possibly by year's end.
The latest survey also showed that other types of mortgages declined.
Rates on 15-year fixed-rate mortgages were at 5.65 percent, compared with 5.66 percent last week.
The five-year adjustable-rate mortgage dipped to 5.51 percent from 5.62 percent last week. The rate on a one-year adjustable-rate mortgage stood at 5.06 percent, compared with 5.22 percent last week.
Slumping house prices are keeping potential buyers on the fence. Rising mortgage defaults are dumping more homes on a glutted market. In addition, many banks have raised their lending standards in response to a surge in mortgage defaults.
The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year and 15-year fixed-rate mortgages averaged 0.6 point; the fee on five-year mortgages averaged 0.5 point. One-year adjustable-rate mortgages averaged 0.7 point.
A year ago, rates on 30-year mortgages stood at 6.53 percent, 15-year mortgage rates averaged 6.22 percent, five-year adjustable-rate mortgages were at 6.24 percent and one-year adjustable-rate mortgages were at 5.65 percent.
