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Mortgage rates reach 6-month high

Mortgage rates reach 6-month high

Last week interest rates on long-term mortgages rose to its highest level in more than six months. 30-year mortgages averaged 5.59 percent, up 0.30 percent from last week. "The rise is caused by the increase in bond yields" and signals "the market expects the Federal Reserve may rise its benchmark rate sooner rather than later"- says Frank Nothaft Chief Economist at Freddie Mac. Similarly adjustable-rate mortgages rose with the average one-year ARM reaching 5.04 percent. 

SF Business Times- 6/12/2009