WASHINGTON – Mortgage rates shot up this week with 30-year mortgages climbing to the highest level in a year, reflecting concerns in financial markets about the troubles at corporate giants Fannie Mae and Freddie Mac.
Freddie Mac reported Thursday that its nationwide survey showed rates on 30-year mortgages surged to 6.63 percent this week, up sharply from 6.26 percent last week. That represented the highest level for 30-year mortgages since they stood at 6.68 percent the week of Aug. 1.
Other mortgage rates showed similar hefty increases, which analysts attributed to financial market jitters over rising mortgage losses at Fannie and Freddie.
Analysts said the rising cost of funds for Fannie and Freddie had an immediate impact on the nationwide average for all mortgage rates since both companies are such big players. Fannie and Freddie either own or guarantee nearly half of the nation’s mortgages.
Rates on 15-year fixed-rate mortgages, a popular option for refinancing, rose to 6.18 percent, up from 5.78 percent last week. Rates on five-year adjustable-rate mortgages rose to 6.16 percent, up from 5.80 percent last week, while rates on one-year ARMs jumped to 5.49 percent, compared to 5.10 percent last week.
Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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