FLORIDA ASSOCIATION OF REALTORS
Rates on 30-Year Mortgages Jump
Washington, June 13,2008 – 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.
Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.32 percent this week. That was sharply up 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 in order to make sure that inflation does not get out of control.
MORTGAGE RATE TREND INDEXMost experts (71 percent) polled by Bankrate.com generally expect mortgage rates to continue rising over the next 30 to 45 days. However, 21 percent expect rates to go down while only 8 percent predict no change over the same time span.