Interest rates rising on inflationary concerns

Mortgage Interest Rates rise to a 8 Month High

Speculation that the central bank could reverse its rate cutting campaign later this year as a way to keep inflationary pressures in check drove up mortgage borrowing costs during the past week, according to Freddie Mac.

Interest on 30 year loans settled at 6.32 percent in the latest survey, climbing from 6.09 percent the previous week to the highest level seen in eight months.

Meanwhile, rates on 15 year fixed loans moved up to 5.93 percent from 5.65 percent for the week; while one-year adjustable-rate mortgages drifted up to 5.09 percent from 5.06 percent. Five-year ARMs floated up to 5.70 percent from 5.51 percent.

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