30-Year Mortgage Rate Jumps to 7.21%

The average interest rate on 30-year fixed-rate mortgages rose sharply to 7.21% in the past week from 6.97% in the previous week, the Federal Home Loan Mortgage Corp. said Thursday.

The rise followed the Federal Reserve Board’s hike last Friday in short-term interest rates to cool inflation pressures. The central bank raised the key federal funds rate to 3.25% from 3%--the first Fed increase in five years.

In its weekly survey, Freddie Mac said the average rate on 15-year fixed-rate mortgages rose to 6.72% last week from 6.46%, and the average rate on adjustable-rate mortgages increased to 4.25% from 4.12% in the prior week.

Freddie Mac said lenders charged an average 1.8% in fees and points for 30-year mortgages, up from 1.7% in the previous week, and 1.7% for 15-year mortgages, unchanged.

Lenders charged an average 1.4% in fees and points for adjustable-rate mortgages, also unchanged from the previous week.