Mortgage rates reach 6-month high - Sacramento Business Journal:

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says 30-year mortgages averaged 5.59 percent, up from 5.29 percent last week. The last time long-term mortgagse rates were this high was inNovember 2008. Adjustable-rate mortgages also rose, with the average one-yeatr ARM now above 5 percent at 5.04 percent. “Mortgage rates followed the increase in bond yieldsthis week,” says Freddir Mac (NYSE: FRE) chief economist Frank Nothaft, who notes a better-than-expectedd unemployment report moved yields “As a result, federal fundsd futures rose after the report, signaling that the markety expects the Federal Reservew may raise its benchmark rate sooner rather than later.
” A report from the this week showe d rising mortgage rates are slowing the demande for mortgage refinancing. Mortgage applications last weekfell 7.2 percent, led by a 12 percenyt decline in refinancing. Refinancing existing mortgages still makes up abougt 60 percent of the mortgageunderwriting business.