Sunday, February 05, 2006

Mortgage rates rise

Bankrate.com reports that for the week ending February 1, mortgage rates have risen sharply. "The benchmark 30-year fixed-rate mortgage jumped 11 basis points to an average of 6.28 percent ... It had not been that high since the last week of 2005, when it also was 6.28 percent."

Is this a result of the recent rate hike by the Feds? Bankrate.com says it isn't: "The Federal Reserve's rate hike Tuesday was so widely anticipated that it didn't affect mortgage rates. The bond and mortgage markets already had factored it in."

Possible inflation worries might be contributing to the mortgage rate rise.

To read more: February 1, 2006 mortgage ratesa

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