Are Fixed Mortgage Interest Rates Going To Rise Again?

Mortgage interest rates may be on the rise again as Freddie Mac announced Thursday the fixed rate for 30 year loans averaged 6.21 percent nationwide last week, up from 6.15 percent the previous week. Investors may be worried about inflation and the Federal Reserve may raise interest rates.

The Federal Reserve may be hiking interest rates in an effort to slow inflation. At its latest meeting on May 9 the Feds said it still viewed the threat of inflation as a greater risk than the possibility that economic growth might slow too much. The rate was the highest for 30-year mortgages since they averaged 6.22 percent the week of April 12.

Chief economist for Freddie Mac, Frank Nothaft said "As long as core inflation continues to trend downward and economic growth remains sub-par, it is unlikely that we will see any big movement in mortgage rates.”