30-Year Rates Jump to 6.03%

Freddie Mac reported a jump in the 30-year fixed mortgage rate to 6.03 percent during the week ending April 24; It went up from 5.88 percent the prior week, marking the first time in six weeks that mortgage rates rose above the 6 percent level.

The 15-year fixed mortgage rate climbed during the same period, moving slightly up to 5.62 percent from 5.40 percent last week.

The five-year adjustable mortgage rate rose to 5.68 percent from 5.48 percent, while the one-year adjustable rate climbed up to 5.28 percent, from 5.10 percent.

The rise in interest rates were attributed to heightened inflationary concerns. As was mentioned in a previous blog entry, concerns of inflation will inch up interest rates.

To those sitting on the fence hoping home prices will decrease further, interest rate increases will make any negligible home price decreases not worth the wait. In fact, if interest rates go up another ½ percent or more, a home price drop of $10,000 will still cost more in interest rate charges in the long run.

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