30-Year Fixed Rates Climb to a 5-Month High

I thought the following was interesting because it is not what I had expected in the Katrina aftermath:

(September 30, 2005) — Freddie Mac reports a boost in the 30-year mortgage rate to its highest level in five months, as the benchmark bumped up to 5.91 percent from 5.8 percent over the past week.

Meanwhile, interest on 15-year loans surged to 5.48 percent from 5.37 percent. The one-year adjustable mortgage rate climbed to 4.68 percent from 4.48 percent, and the five-year hybrid adjustable rate moved up to 5.44 percent from 5.31 percent.

Freddie Mac chief economist Frank Nothaft attributes the increases to concerns about inflation, weaker consumer confidence and higher energy prices—which will combine to lower consumer spending and further drive up mortgage rates during the fourth quarter.

Source: Detroit Free Press (09/30/05); Crutsinger, Martin

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