From SF Gate today, “Rates on 30-year mortgages jumped to the highest level in more than two years this week as financial markets grew more concerned about inflation.”

“Mortgage giant Freddie Mac reported Thursday that the nationwide average for 30-year, fixed-rate mortgages rose to 6.36 percent, up from 6.31 percent last week. That was the highest level since 30-year mortgages were at 6.44 percent in early September 2003.”

“A year ago, 30-year mortgages averaged 5.76 percent, 15-year mortgages were at 5.16 percent and one-year ARMs averaged 4.16 percent”

The important thing to remember is how this fits into the overall historical picture. When I bought my first house in 1994, I was more than happy to pay 8% to borrow money. Higher interest rates will affect sales prices eventually (assuming they keep rising), but I don’t hear these rates figuring into buyer’s decisions on whether or not they are going to purchase this year.

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