Rates on 30-year mortgages rose this week to the highest level in 15 months while one-year adjustable rate mortgages climbed to the highest level in 41/2 years. Analysts expect rising mortgage rates to cool the booming housing market in coming months.
The nationwide average for 30-year, fixed-rate mortgages rose this week to 6.10 percent, Freddie Mac said Thursday, the highest level since 30-year mortgages were at 6.21 percent in late July 2004.
Last week the 30-year rate rose to 6.03 percent, the first time it had been above 6 percent since the last two weeks in March.
Rates on all other types of mortgages were up as well this week, reflecting concerns in financial markets about inflation.
The nation's housing market has been booming this year with sales of both new and existing homes expected to set records for the fifth consecutive year. Economists are forecasting, however, that the sales pace will slow next year under the impact of higher mortgage rates.
Rates on 15-year fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.65 percent this week, up from 5.62 percent last week.
One-year adjustable-rate mortgages rose to 4.89 percent, up from 4.85 percent last week, pushing the one-year ARM to its highest level since it was at 4.91 percent in late April 2002.
Rates on five-year hybrid adjustable-rate mortgages averaged 5.59 percent this week, up from 5.57 percent last week.
The nationwide averages for mortgage rates do not include add-on fees known as points. The one-year and five-year ARM carried a nationwide average fee of 0.7 point, while the 15-year mortgage had an average fee of 0.6 point and the 30-year carried an average fee of 0.5 point.
AWARDS . . . Miller and Smith Homes Inc.'s communities at the Peninsula at Indian River Bay in Sussex County, Del., received the best of show award at the 48th annual Monument Awards, an annual competition for local home builders sponsored by the Northern Virginia Building Industry Association and the Maryland-National Capital Building Industry Association. The groups also gave a lifetime achievement award to Alvin Hall, chief executive of Miller and Smith. Builders also received awards in 63 categories of different types of housing at different price levels.
* The Mayor's Awards for Excellence in Historic Preservation, set for tonight at the Kennedy-Warren Apartments on Connecticut Avenue NW, honor 19 winners in six categories. The event is hosted by the District Historic Preservation Office, part of the office of planning; the DC Preservation League; Pillsbury Winthrop Shaw Pittman LLP; and B.F. Saul Property Co.
Among the winners is Charles Cassell, architect, consultant and preservationist and former Historic Preservation Review Board member. Cassell, son of famed Howard University architect Albert Cassell, will receive a lifetime achievement award for his work in the District. Other recipients include Judge Rohulamin Quander, the mayor's Agent for Historic Preservation; the Smithsonian Institution; the International Campaign for Tibet; and Capital Hill community activist George A. Didden III.