Mercury News (07/23/08) Bajaj, Vikas
HSH Associates reports that mortgage rates are nearing their highest levels in five years. As of July 22, the average interest rate for 30-year fixed loans rose to 6.71 percent, compared to 6.44 percent on July 18; and the average rate for jumbo loans was 7.8 percent, the highest since December 2000, according to the publisher of consumer rates. Concern about the ability of Fannie Mae and Freddie Mac to support the housing market are behind the increase in borrowing costs. Bond investors are pushing interest rates on mortgage-backed securities higher, and the added cost is being passed on to borrowers through the mortgage markets.
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