Friday, June 12, 2009

Mortgage Rates Increase, But Not Stopping Buyers

Higher interest rates put the brakes on mortgage refinancing this week, according to Freddie Mac. The firm's weekly survey pegged interest on 30-year fixed mortgages at an average of 5.59 percent -- up from 5.29 percent last week and the highest rate since November 2008. Other rates also climbed:

  • Interest climbed to 5.06 percent from 4.79 percent for 15-year fixed loans;
  • 5.17 percent from 4.85 percent for five-year, adjustable-rate mortgages;
  • 5.04 percent from 4.81 percent for one-year ARMs.

Freddie Mac chief economist Frank Nothaft says the gains are not affecting home purchase loans.