Rain and More Rain

The rain is falling and interest rates aren’t! The average 30-year fixed mortgage rate jumped to 6.43 percent from 6.35 percent during the week ended April 6, according to Freddie Mac.Interest on 15-year fixed loans edged up to 6.10 percent from 6 percent over the same period. Meanwhile, the one-year adjustable mortgage rate rose to 5.57 percent from 5.51 percent; and the five-year hybrid ARM surged to 6.11 percent from 6.02 percent. Freddie Mac chief economist Frank Nothaft attributes the gains to economic growth and rising energy prices, which have sparked concerns about inflation. “In the first quarter of 2006, it appears that economic growth picked up relative to the last three months of 2005. There is concern that the continued high level of energy cost may lead to inflation in other sectors of the economy and fear of inflation leads to higher mortgage rates, like the ones we see this week." Read the full story here.

In my last post I mentioned a site I look at, Housing Tracker, and said they had reported an increase in the median sale price increase during March. I was politely reminded, by the author of Sacramento Land(ing) Blog, that Housing Tracker reports the median asking price, not sale price. By the way, I do enjoy reading the Sacramento Land(ing), for a “bubbler” slant on the market it is well written and worth the time to read.