Jones Lang LaSalle


MORTGAGE RATES ARE MOVING UP
Bloomberg

May 19, 2006 -- The average rate on a 30-year fixed mortgage in the U.S. rose to 6.60 percent this week, the highest in almost four years, according to Freddie Mac.

The 30-year rate rose from last week's 6.58 percent and compares with 5.71 percent a year earlier. The rate hasn't been higher since the week ended June 20, 2002. The one-year adjustable rate was unchanged at 5.62 percent.

Rising mortgage costs are contributing to a slowdown in the housing market that's being watched by Fed policy makers as they decide whether to extend a series of interest-rate increases that started in June 2004.

"It seems pretty clear now the U.S. housing market is cooling," Fed Chairman Ben S. Bernanke said yesterday in response to questions after a speech in Chicago. "This looks to be a very orderly and moderate cooling at this point."

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