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WASHINGTON – Rates on 30-year mortgages jumped to the highest level in nearly eight months, reflecting increased concerns about what the Federal Reserve might do to battle inflation.
Mortgagor Freddie Mac said yesterday 30-year fixed-rate mortgages averaged 6.32 percent this week. That was up sharply from 6.09 percent last week. It was the highest level for 30-year mortgages since they averaged 6.33 percent for the week of Oct. 25.
Analysts attributed the big jump to increased concerns in financial markets that the Federal Reserve might be preparing to start raising interest rates to make sure that inflation does not get out of control.
“Mortgage rates jumped this week after a number of Federal Reserve officials . . . expressed concern over a threat of inflation,” said Frank Nothaft, Freddie Mac’s chief economist.
Federal Reserve Chairman Ben Bernanke on Monday signaled deepening worries about inflation and said the Fed would “strongly resist” any tendency for Americans’ expectations about price increases to become unsettled.
Other mortgages showed increases this week, in the Freddie Mac survey. Rates on 15-year fixed-rate mortgages rose to 5.93 percent, up from 5.65 percent last week. The five-year adjustable-rate mortgage rose to 5.70 percent, up from 5.51 percent last week. One-year adjustable-rate mortgages edged up to 5.09 percent from 5.06 percent last week.
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