Oregon Mortgages

Mortgage Rates Rise

Well over the last 5 weeks or so we’ve seen a pretty substantial increase in 30 year fixed rates. The 30-year Fixed Rate Mortgage has increased 38 basis points to reach the highest level since it averaged 6.55 percent during the week ended August 10th 2006. Also, the 5 year treasury note saw it’s highest level, last week, since the week of August 3rd 2006. We were so pampered when rates remained pretty consistent for the last 5 months.

Frank Nothaft, Freddie Mac vice president and chief economist commented about the report, “Mortgage Rates climbed this week owing to market concerns of a tight labor force and wage growth. May’s unemployment rate remained at the second lowest level since May 2001 while average hourly earnings rose. Additionally, unit labor costs increased 1.8 percent over the first three months of the year, tripling the original estimate, and fueling inflation fears.”

With hourly earnings rising, unemployment being at a 6 year low and inflation fears on the rise refect directly into the increase in mortgage rates. We’ll see how the summer plays out and with reports to be expected that will affect Mortgage Rates we’ll all be watching very closely.