Mortgage rates climb as economy grows

As the economic picture has brightened and inflation has become a possibility, mortgage rates have continued to climb. The average 30-year fixed-rate mortgage stood at 5.89 percent this week, up from 5.79 percent last week, according to Freddie Mac’s Primary Mortgage Market Survey.

“With economic news continuing to point to a growing economy, the financial markets are beginning to think about the likelihood of inflation again,” said Frank Nothaft, Freddie Mac chief economist. “Not only that, but jobs creation, retail sales, and consumer prices jumped in March, which buoyed market speculation that the Federal Reserve Board will raise rates sooner than expected. Add all that to the mix and mortgage rates were bound to rise this week.”

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