Freddie Mac reports a more than quarter point gain in the 30-year fixed mortgage rate to 6.63% during the week ended July 24 from the prior week, marking the highest level since it reached 6.68% last August. The 15-year fixed mortgage rate also increased, climbing to 6.18% from 5.78%. Meanwhile, the five-year hybrid adjustable mortgage rate rose to 6.16% from 5.80%; and the one-year ARM surged to 5.49% from 5.10%.
Freddie Mac chief economist Frank Nothaft attributes the jump to “market concerns about rising inflation, further weakness in the housing market and greater probability that the Federal Reserve will raise short-term rates this year.” There is no doubt that we are looking at a volatile lending atmosphere while oil prices increase and inflation worries worsen. Look for Nashville mortgage rates to ease when the price of oil comes down under $140 per barrel.
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