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30-year mortgage rate rises to 6.14%

The average 30-year fixed mortgage rate rose for the sixth straight week to the highest level this year, Freddie Mac said.

The 30-year rate for the week that ended Friday averaged 6.14 percent, up from last week's 5.94 percent. Last week's rate is the highest since 6.19 percent in the week that ended Dec. 6, the No. 2 buyer of U.S. mortgages said.

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Interest rates have risen in recent weeks on expectations that faster economic growth in the second half will mean more demand for credit.

Rising rates will "surely begin to slow the pace of refinancing as we go into the last quarter of the year," said Frank E. Nothaft, Freddie Mac's chief economist. Booming sales of houses have helped support growth in the economy.

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"With the recent uptick in fixed-rate mortgage rates, we are starting to see short-term mortgage-rate products, like the one-year ARM, gain in popularity," Nothaft said in a statement.

The rate on a one-year adjustable rate mortgage (ARM) increased to 3.68 percent last week from 3.67 percent. It reached a record-low 3.45 percent last month.

The average rate on a 15-year mortgage, a popular refinancing option, rose to 5.44 percent, the highest level since the week that ended Dec. 13, from 5.27 percent.

An index of applications for U.S. mortgages fell last week to the lowest this year as the rise in mortgage rates slowed the pace of refinancing, the Washington-based Mortgage Bankers Association of America reported last week. The group's refinancing index plunged 33 percent.

The monthly payment on a $100,000 mortgage at last week's 30-year fixed rate of 6.14 percent would be $608.58, up from $595.70 the week that ended July 25.


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