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The Honolulu Advertiser
Posted on: Friday, June 13, 2008

Mortgage rates up sharply

Associated Press

WASHINGTON — Rates on 30-year mortgages jumped to the highest level in nearly eight months.

Mortgage company Freddie Mac reported yesterday that 30-year fixed-rate mortgages averaged 6.32 percent this week. That was up sharply from 6.09 percent last week, and the highest since the 6.33 percent average for the week of Oct. 25.

Analysts attribute the big jump to concerns in financial markets that the Federal Reserve might be preparing to raise interest rates to control inflation.

Other types of mortgages increased this week, according to the Freddie Mac survey.

Rates on 15-year fixed-rate mortgages rose to 5.93 percent, up from 5.65 percent last week.

Five-year adjustable-rate mortgages rose to 5.70 percent, up from 5.51 percent.

One-year adjustable-rate mortgages edged up to 5.09 percent, from 5.06 percent last week.