NEW YORK, Jan. 12 (UPI) -- U.S. mortgage interest rates fell slightly last week as bond market fears about inflation eased.
The 30-year fixed-rate mortgage averaged between 6.15 percent and 6.22 percent during the week ending Jan. 12.
Bankrate.com said Thursday mortgage rates were weighed down on continued concerns about the housing market and a report showing inconsistent job growth.
"Even though yields on benchmark Treasury securities, such as the 10-year note, were flat or slightly higher, mortgage rates declined," the group said in a statement. "Rising inventories of unsold homes and a notable decline in mortgage applications versus one year ago are just some of the concerns weighing on the mortgage market."
Freddie Mac's chief economist suggested that mortgage rates are set for an increase this year.
"Our January forecast calls for a gradual rise in long-term rates throughout 2006, ending the year at about 6.5 percent for the 30-year fixed-rate mortgage, while relative rate differences with adjustable-rate mortgages will narrow," said Frank Nothaft. "This should induce some slowing in housing market activity, but we expect the housing market in 2006 to be strong, nonetheless."
