30-Year Mortgage Rates Hit 9-Month High

The average interest rate on 30-year fixed-rate mortgages rose above 7% this week, the highest level in nine months, mortgage company Freddie Mac said. The average increased for the fifth straight week to 7.06%, the highest level since the end of May. It was 6.89% the previous week. The increase, if sustained, will slightly cool home sales and sharply reduce mortgage refinancing, a key support for consumer spending during the past year, analysts said. The average reached a 31-year low of 6.49% in early October as global investors poured money into U.S. financial markets. But even with the recent climb, the average remains low by historical standards, Freddie Mac said. Fifteen-year mortgages, a popular refinancing option, averaged 6.70% this week, highest since mid-June and up from 6.51% last week. Lenders were asking an average initial rate of 5.74% on one-year adjustable-rate mortgages, up from 5.71% and the highest in 21 months. The rates do not include add-on fees known as points.