Mortgage Rates Hit 8-Month High on Inflation Concerns

Rates on 30-year fixed rate mortgages spiked to the highest level since October 2007 this week, according to mortgage lender Freddie Mac. The nearly 8-month high of 6.32% was up from the previous weeks’ 6.09% rate–but significantly down from the 6.74% mortgage buyers were paying this time last year.

Comments from Fed Chairman Ben Bernanke and other board members have indicated they are closely monitoring inflation, perhaps signaling a rate increase at the FOMC’s next meeting.

On the same news, Freddie’s Chief Economist Frank Nothaft said15-year fixed rate mortgages were also up to 5.93% over the week-ago 5.65% rate and 5-year adjustable rate mortgages saw a similar bump to 5.70% from 5.51% last week.

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