For the fourth consecutive week mortgage interest rates for a 30 year fixed interest rate mortgage loan are up, soaring to the highest levels since last spring amid market concerns regarding the state of the US economy and looming inflation. A survey of national lenders stated that the average 30 year fixed interest rate mortgage loan rose to 5.98 % up from 5.91 % the week before. This is the highest mortgage interest rages have been since March 2005 and the highest mortgage interest rates this year.
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Mortgage interest rates have been climbing for four weeks now on inflationary worries caused by high energy prices and the recent natural disasters of Hurricanes Katrina and Rita. Oil prices have skyrocketed since Hurricanes Katrina and Rita shut down oil refineries and oil platforms in the Gulf Coast region. As a response to inflationary concerns, the Fed raised short-term interest rates for the 11th consecutive time; which has done nothing to avert the problem. Mortgage interest rates should continue to rise over the upcoming holiday season as the economy begins to rebound from its recent tailspin.
As for 15 year fixed interest rate mortgages, which by the way are a popular choice for mortgage refinancing, mortgage interest rates are up to 5.54 %; last week they were 5.48 %. One year adjustable interest rate mortgage (ARM) loans are up to 4.77 %; this is the highest levels in over three years. Last week the one year ARM was 4.68 %. Mortgage interest rates for a five year hybrid ARMs are up to 5.48 %; last week they were 5.31 %. This time last year, the 30 year fixed interest rate mortgage were 5.82 %, with 15-year fixed interest rate mortgages at 5.24 %; one year adjustable interest rate mortgages were running 4.08 % this time last fall.