The 30 year fixed mortgage rate averaged 6.42 percent for the week ending June 19th 2008, up 0.10 percent from last week. This is the highest level that the 30 year mortgage rate has reached since September 27th 2007, yet it is still down from last years reading of 6.69 percent.

The 15 year fixed mortgage rate is up 0.09 percent for the week, currently averaging 6.02 percent. This is the highest level for the 15 year mortgage rate since back on October 18 2007; however it is still lower than last years level of 6.08 percent.

Both the 1 year and 5 year adjustable rate mortgages are up from last weeks reading. The 5 year ARM currently averages 5.89 percent, up 0.19 percent from last week, and the 1 year arm average is at 5.19 percent, up from 5.09 percent last week.

"Fixed-rate mortgage rates continued to climb this week to the highest point in nearly nine months following the release of May's consumer and producer price indexes, both of which showed stronger levels of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "Additionally, consumer prices rose 0.6 percent last month, the most since November 2007, and traders began to fully price in a Federal Reserve rate hike by the end of September, based on the federal funds futures market.

"Meanwhile, the housing market still struggles. New construction of single family (1-unit) homes fell in May to the weakest pace since January 1991 and April's starts had a downward revision."

You can view the mortgage rate forecast for June 2008 by visiting Future Planning Financial at www.fpf-direct.com.