Jitters cause rise in mortgage rates

Associated Press

July 25, 2008

WASHINGTON - Mortgage rates shot up this week, with 30-year mortgages climbing to the highest level in nearly a year, reflecting concerns in financial markets about the troubles at corporate giants Fannie Mae and Freddie Mac.

Freddie Mac reported yesterday 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.

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 with 5.10 percent last week.

The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year and 15-year mortgages averaged 0.6 point. The fee for five-year mortgages averaged 0.7 point, while the fee on one-year mortgages averaged 0.5 point.