As the U.S. economy government continues to intervene with ailing mortgage companies, investors began to dump U.S. debt which has helped drive mortgage rates back on the upward trend.

As we have said ad nauseum, the Fed can only do so much with interest rates. They can cut the living daylights out of the short term rate, driving down things like credit cards and HELOCs and pushing up things like food prices; but they don’t control the long-term interest rates associated with most mortgages.

Mortgage rates fell during the past week as many investors feel that it is unlikely that the Federal Reserve is going to raise key interest rates anytime soon.

Fixed mortgage rates continue to creep to their highest levels this year as the Federal Reserve made the decision to hold key interest rates at 2 percent.

Freddie Mac released its Primary Mortgage Market Survey today and it shows both fixed and adjustable mortgage rates continue to climb. Inflation worries and speculations that the Federal Reserve is going to raise key interest rates are main contributors to increasing mortgage rates.

Mortgage rates in the month of June have not been nice to consumers as they have rose by more than half of a percentage point for fixed rate mortgages, according to the Mortgage Bankers Association. With mortgage rates increasing dramatically over the past week the number of mortgage applications have also begun to slow.

The MBA’s mortgage application index fell nearly 10% last week driven down by the highest interest rates in a year. High rates, coupled with declining property values and tighter underwriting guidelines continue to put pressure on the mortgage market.

Freddie Mac’s Primary Mortgage Market Survey shows fixed mortgage rates rising almost as fast as gas prices. Even 6.3 percent rises in pending home sales for April are no contest to how serious the current inflation concerns have on mortgage rates.

Mortgage rates on fixed and adjustable mortgages increased throughout the week according to the Mortgage Bankers Associations weekly survey released June 11th. Mortgage applications, on the other hand, increased 10.9 percent throughout the week on a seasonally adjusted basis.

Long term mortgage rates held fairly steady according to Freddie Mac’s latest release of its Primary Mortgage Market Survey. Meanwhile, short term mortgage rates dip considerably during the week to their lowest level since April.

Fixed mortgage rates are up in a big way this week, according to the Mortgage Bankers Association’s weekly survey. Averages for the 30 and 15 year fixed mortgage rates have hit their highest level since March 12th, 2008 and it doesn’t look like there is any relief in sight.

Coming into the month of May the biggest concern for the US economy was the grim outlook many economist had on inflation. Inflation was expected to push mortgage rates higher and slow an already slow US housing market.