US 30-, 15 yr mortgage rates highest since July
WASHINGTON, Dec 20 (Reuters) - Interest rates on U.S. 30-year mortgages rose to their highest level since mid-July in the week ending Dec. 21 as concerns linger that the economic recovery may not occur as soon as some had expected, Freddie Mac said on Thursday.
U.S. 30-year fixed rate mortgages averaged 7.17 percent in the week, up from 7.09 percent last week. The week's rate was the highest since 7.21 in the week of July 13.
Fifteen-year mortgages rose to an average of 6.65 percent compared to 6.57 percent in the previous week. The rate was the highest since matching 6.65 percent in the week of July 20.
One-year adjustable rate mortgages (ARM) stood at an average 5.27 percent, up eight basis points from 5.19 percent a week ago.
A year ago, 30-year mortgages averaged 7.17 percent, 15-year mortgages 6.84 percent and the ARM 7.02 percent.
``Currently the market is focusing on an anticipated economic recovery within the next six months,'' said Frank Nothaft, Freddie Mac chief economist.
``That focus put some upward pressure on mortgage rates this week, causing them to rise,'' he said.
Nothaft said rates would remain volatile during the next few months as the market works to gauge exactly when and how strong the economic recovery will be.
U.S. construction on new homes occurred at a stronger than-expected clip in November as the housing market showed signs of resiliency in the face of a recession.
The Commerce Department said housing starts surged 8.2 percent to an annual rate of 1.645 million units in November, its fastest monthly pace since July.
``Figures released earlier this week showed housing starts for November rose unexpectedly to historically strong levels,'' said Nothaft.
``If rates continue at these low levels, next year should be another banner year for housing.''
Freddie Mac said lenders charged an average 0.7 percent in fees and points on 30- and 15-year mortgages, down from 0.8 last week. They also charged 0.8 percent on the ARM, unchanged from a week ago.
Freddie Mac is a corporation chartered by Congress that buys mortgages from lenders and packages them into securities for investors.
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