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Rate Update
May
2 2008
WASHINGTON (AP)
—
Rates
on 30-year mortgages remained above 6 percent, edging up to the
highest level in seven weeks and reflecting continued financial
market concerns about inflation.
Mortgage giant
Freddie Mac reported Thursday that 30-year fixed-rate
mortgages averaged 6.06 percent this week, up slightly from
6.03 percent last week. It marked the second week that 30-year rates
have been above 6 percent and was the highest level since these
mortgages averaged 6.13 percent the week of March 16.
Analysts noted the Federal Reserve, which cut a key interest rate on
Wednesday, expressed concerns that the uncertainty over whether
inflation will moderate remains at a high level.
While the Fed
cut the federal funds rate to 2 percent, the seventh rate reduction
since September, it signaled that it was likely to pause to
determine whether its previous rate cuts have been enough to boost
economic growth in coming months.
“This week saw
little change in mortgage rates on mixed news of higher inflation
and a weaker housing market,” said Frank Nothaft, chief economist at
Freddie Mac.
Rates on other
types of mortgages were mixed this week.
The average
rate on 15-year, fixed-rate mortgages, a popular choice for
refinancing,
dipped to 5.59 percent this week, down from 5.62 percent last week.
Five-year
adjustable-rate mortgages rose to 5.73 percent, up from 5.68 percent
last week. One-year adjustable-rate mortgages were unchanged at 5.29
percent, the same as last week.
The mortgage
rates do not include add-on fees known as points. For 30-year,
15-year and five-year mortgages, the nationwide average fee was 0.5
point. The average fee for one-year adjustable-rate mortgages was
0.6 point.
A year
ago, rates on 30-year mortgages stood at 6.16 percent, 15-year
mortgage rates averaged 5.87 percent, five-year adjustable-rate
mortgages were 5.87 percent and one-year adjustable-rate mortgages
were at 5.42 percent.
source: ap.org
May 1, 1:08 PM EDT
By MARTIN CRUTSINGER
AP
Economics Writer
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