For the sixth time in seven weeks there has been an increase in mortgage rates. The average 30 year fixed rate mortgage went up to 6.26 percent. It is now at its highest level over the past ten weeks.
Not to be outdone, the 15 year fixed rate mortgage also rose. This popular refinancing option is now at 6.03 percent. ARM moved higher also. The average 5/1 ARM now sits at 6.2 percent and the one-year adjustable rate mortgage is at 6 percent.
Mortgage rates are pushing higher due to the strong economic data from higher than expected December retail sales. In addition, the unemployment claims rate is now below the 300,000 level. These factors have raised concerns over inflation and that has stifled any cuts in the Federal Reserve rate.
Overall, however, mortgage rates are still low. The last interest rate hike was in June ‘06 and took interest rates to 6.93 percent.
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