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 The mortgage company Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.14 percent this week. That compares with 6.11 percent last week and was the highest since averaging 6.20 percent the week of Nov. 21.
Just two weeks ago, 30-year rates had dipped to 5.96 percent, the lowest in more than two years.
Analysts attributed this week's increase to worries about inflation stemming from sharp increases in prices at both the consumer and wholesale level as well as unexpected strength in a report on retail sales.
"Stronger-than-expected inflation reports and retail sales for November put upward pressure on long-term interest rates last week," said Frank Nothaft, chief economist at Freddie Mac.
Other mortgage rates also moved higher this week.
Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, rose to 5.79 percent from 5.78 percent last week.
For five-year adjustable-rate mortgages, rates increased to 5.90 percent, compared with 5.89 percent last week. Rates on one-year adjustable-rate mortgages moved to 5.51 percent from 5.50 percent last week.
The pickup in mortgage rates comes as some prospective home buyers struggle with a credit crunch that has made it more difficult to secure financing for homes and other big-ticket purchases. Tighter lending requirements have aggravated the housing slump, which is weighing heavily on economic activity.
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 The mortgage rates do not include add-on fees known as points. Thirty-year and 15-year mortgages each carried a nationwide average fee of four-tenths of a point. Five-year adjustable-rate mortgages had a fee of one-half point while one-year adjustable mortgages carried an average fee of six-tenths of a point.
A year ago, 30-year mortgages stood at 6.13 percent. Rates on 15-year mortgages were at 5.89 percent a year ago, while five-year ARMS averaged 5.96 percent and one-year ARMs were at 5.44 percent.
The housing market has suffered through a severe slump following five-years of record sales and soaring prices. Sales and prices have slumped and foreclosures have climbed to record highs. The problems in housing are expected to persist well into next year.
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On the Net:
Freddie Mac: http://www.freddiemac.com/
[Associated Press; By MARTIN CRUTSINGER]
Copyright 2007 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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