Mortgage Rates Still Headed Up

The 30 year fixed mortgage rate inched up .03 percent to average 6.45 percent according to Freddie Mac’s Primary Mortgage Market Survey. It has been nearly 10 months, September 6th of 2007, when the 30 year fixed mortgage rate had a higher reading of 6.46 percent.

The 15 year fixed mortgage rate also saw a slight increase this week of .02 percent to end the week at 6.04 percent. October 18th of 2007 was the last time the 15 year fixed mortgage rate was at a higher level, 6.08 percent.

Adjustable mortgage rates saw larger increases throughout the week with the 5 year ARM up 0.10 percent to 5.99 percent and the 1 year ARM up .08 percent to 5.27 percent.

"Fixed-rate mortgage rates held relatively stable this week leading up to the June 24-25 Federal Reserve (Fed) Policy Committee meeting," said Frank Nothaft, Freddie Mac vice president and chief economist. "ARM rates, which are typically tied to short-term instruments, rose slightly due to market uncertainty over how the Fed might respond.

"This week's release of the April S&P-Case Shiller® house price indexes offered a few surprises. The decline in the 20-city composite index was less than that in March and eight cities had positive monthly growth in April – compared to only two cities in March. In addition, May's new home median sales price increased from the prior month, according the Commerce Department. It should be noted, however, that seasonality may have played a factor in these results."

Get the Mortgage Rate Forecast For July 2008 by visiting Future Planning Financial at www.fpf-direct.com