WASHINGTON – Rates on 30-year mortgages jumped to the highest level in five weeks as investors expressed disappointment that the Federal Reserve continues to remain worried about inflation threats.
Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.21 percent nationwide this week, up from 6.15 percent last week. It was the highest level for 30-year mortgages since they averaged 6.22 percent the week of April 12.
Rates had either fallen or been unchanged over the previous month as investors grew hopeful that weaker-than-expected economic data might convince the Fed to cut interest rates to bolster the sagging economy.
However, the Fed at its latest meeting May 9 said that it still viewed the threat of inflation as a greater risk than the possibility that economic growth might slow too much.
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