Mortgage interest rates in the United States have resumed their upward climb and have risen to their highest levels since last year. According to a survey conducted by one national mortgage lender, interest rates for a traditional, fixed 30 year fixed rate mortgages are up to 6.23% this week. Last week this mortgage interest rate was 6.12%.
Mortgage interest rates are going because of inflationary concerns; inflationary pressure in the marketplace causes long term mortgage interest rates to rise. Prior to this week, long term mortgage interest rates had been declining.
Interest rates for 15 year fixed rate mortgages average 5.81% this week; last week this mortgage interest rate was 5.7%. This shorter term mortgage is a popular choice for homeowners looking to refinance their riskier adjustable rate mortgage loans.
As for one year adjustable rate mortgages, (ARM) they are up to 5.33% this week. Last week a one year ARM averaged 5.2%. Five year hybrid ARM loans are up to 5.87% from 5.75% the previous week.
This increase comes on the heels of the Federal Reserve raising short term interest rates on Tuesday; the government has raised short term interest rates to the highest levels in five years. This is the latest increase in the Federal Reserve’s ever failing strategy to battle inflation by cooling the economy.
At this time last year, the 30 year mortgage interest rate was at 5.63%. Fifteen year mortgage rates were at 5.15%, and one year ARMs averaged 4.23%. Five year hybrid ARMs were 5.0% at this time last year.
Analysts predict mortgage interest rates will continue to rise throughout the year and could hit 6.4 percent this fall. Others are predicting 7% by the Christmas holiday.