Mortgage rates going up
Posted by Ben Fri, 05 Aug 2005 18:03:00 GMT
There are several sources reporting an increase in mortgage rates this week, making this the fifth consecutive week that rates have gone up. The average rate for a 30-year fixed mortgage is now at 5.82% and short-term adjustable-rate mortgages (ARMs) are at their highest point in three years.
”Long-term mortgage rates will more than likely rise over the next few months, albeit modestly compared to shorter-term rates,” said Frank Nothaft, vice president and chief economist at Freddie Mac.
”As the Federal Reserve increases its targeted overnight-lending rate, home-equity loans will become more costly. This is because many home-equity loans are tied to the prime rate, which generally follows every Fed rate hike. Currently, the prime rate is 6.25 percent and is expected by many to rise to 6.50 percent next week,” Nothaft said.
from Long-term rates seen moving upward on Fed rate hikes
As long as the Federal Reserve continues to raise short-term interest rates monthy, you can expect mortgage and credit card interest rates to follow. If you have been thinking about refinancing your existing loan, you ought to consider doing it soon.
