10-28-2005, 09:19 PM
| | 30-year Mortgages Rates Rise to the highest level in 15 months
WASHINGTON (AP) — Rates on 30-year mortgages stayed above 6% for the third straight week, rising to the highest level in 15 months.
Mortgage giant Freddie Mac reported Thursday that the nationwide average for 30-year, fixed-rate mortgages rose this week to 6.15%, from 6.10% last week and the highest level since 30-year mortgages were 6.21% in late July 2004.
Rates on all other types of mortgages were up as well this week, reflecting growing nervousness in financial markets about inflation pressures, generated in part by the spike in energy prices in the wake of the lost production following the Gulf Coast hurricanes.
The nation's housing market has been booming this year with sales of both new and existing homes expected to set records for the fifth consecutive year. However, economists are forecasting that the sales pace will slow next year under the impact of higher mortgage rates.
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