The average 30-year fixed-rate mortgage stood at 5.79 percent this week, up significantly from last week, when it averaged 5.52 percent.
“The bond market reacted to the welcome news last Friday that jobs are finally being created, which is much needed for continued expansion of the economy,” said Amy Crews Cutts, Freddie Mac deputy chief economist. “Mortgage rates again followed the bond market, rising significantly from last week to this week, and spurring speculation that the Federal Reserve Board will raise rates sooner rather than later.
“With that said, it should also be noted that long-term rates are not expected to rise precipitously and, in fact, we still expect the 30-year (fixed-rate mortgage) will average below six percent for 2004.”