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Mortgage rates slowly rising January 17, 2007

Posted by Jay Medina in News and Information.
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The 30-year fixed-rate mortgage is predicted to gradually increase in rates to 6.7 percent by the fourth quarter of this year, according to NAR projections. As we enter the new year, rates are drifting slowly upward to an average of 6.18 percent for a 30-year fixed-rate mortgage as of January 1 – 5.93 percent for 15-year fixed loans, according to Freddie Mac, a major buyer of existing home mortgages. Mortgage lenders require an average of 0.4 percent points (fees). Last year at this time, the rate for a 30-year fixed mortgage was 6.22 percent.

“Mortgage rates are edging up following news of a jump in consumer spending in November,” said Fran Nothaft, Freddie Mac’s chief economist. “Financial markets are concerned that stronger spending could keep inflation elevated.” The projected average interest rate for home mortgages in 2007 was lowered recently by Freddie Mac. The new projected average rate is 6.3 percent – a substantial drop from the previously forecasted 6.7 percent.

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