Released: June 17, 2007

Mortgage rates take upward path

Source: Nell Henderson, Washington Post (Free Registration)

The price of money has gone up. Or more technically, long-term interest rates have jumped in recent weeks, rattling the already slumping housing market.

When potential home buyers call for mortgage rate quotes these days, “they’re shocked; they almost don’t believe you,” said Jim Foley, senior vice president of George Mason Mortgage. “They’re quick to get off the phone to make more calls.”

The average rate on a 30-year, fixed-rate mortgage rose to 6.74 percent last week, up more than half a percentage point in four weeks, from 6.21 percent, according to mortgage financier Freddie Mac. That would boost the monthly payment on a $400,000 mortgage by $139.

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