Mortgage rates are on the rise

The benchmark 30-year fixed-rate mortgage rose 30 basis points to 5.95%, according to Bankrate.com, while the 15-year fixed-rate rose 31 basis points to 5.37%. In the last 3 weeks the 30-year fixed-rate mortgages have increased from 5.29% to an average 5.59% with an average 0.7 point for the week ending June 11. The 15-year fixed-rate mortgage averaged 5.06 this week, up from last week’s 4.79% average, but still well below the 5.93% average last year at this time. Freddie Mac’s vice president and chief economist says higher mortgage rates are slowing refinancing activity; however, the demand for home purchases hasn’t eased. Adjustable-rate mortgages are also on the rise, now sitting above five percent. Five-year ARMs averaged 5.17% this week, compared to last week’s 4.85% average. One-year ARMs rose from 4.81% to 5.04% this week. All those borrowers waiting for rates to fall even farther, may have missed the window of opportunity.