Mortgage interest rates are up to their highest levels in over two years. According to a survey of one national mortgage lender interest rates for fixed, 30 year, traditional mortgages rose to 6.37% this week. This is up from 6.24% last week and the highest mortgage interest rate since the fall of 2003.
Inflationary concerns have driven interest up despite the Federal Reserves futile attempts to cool the economy by raising short term interest rates. This has led to the dramatic rise in mortgage interest rates. The Federal Reserve may react to recent inflationary pressure by raising short term rates again. Most analysts had predicted the Federal Reserve was done tinkering with the economy and interest rates were leveling off.
Interest rates for 15 year, fixed mortgages are up to 6% this week. Last week the 15 year, fixed rate mortgage was 5.89%. This is the highest level 15 year fixed mortgages have been at since the summer of 2002. One year adjustable rate mortgages are up to 5.45% this week. Last week a one year ARM averaged 5.34% and the highest since the fall of 2001. Interest rates for 5/1 hybrid ARMs are up to 6.03% this week; last week a 5/1 hybrid averaged 5.97%.
One year ago a fixed 30 year mortgage was at 5.85%, 15 year mortgages averaged 5.38%, and one year ARMs averaged 4.24%.