Mortgage Rates Climb to 8-Month High

Speculation that the central bank could reverse its rate-cutting campaign later this year as a way to keep inflation in check drove up mortgage borrowing costs during the past week, according to Freddie Mac.

Interest on 30-year loans settled at 6.32 percent in the latest survey, climbing from 6.09 percent the previous week to the highest level seen in eight months.

Meanwhile, rates on 15-year fixed loans moved up to 5.93 percent from 5.65 percent for the week; while one-year adjustable-rate mortgages drifted up to 5.09 percent from 5.06 percent. Five-year ARMs floated up to 5.70 percent from 5.51 percent.

Source: Philadelphia Inquirer (06/13/08)