Mortgage rates hit nearly 4-year-high for 3rd week
30-year fixed-rate mortgage averages 6.58 percent this week, the highest level since June 2002.
April 27, 2006: 12:20 PM EDT

NEW YORK (CNNMoney.com) - Mortgage rates rose for the fifth consecutive week, to the highest level in nearly four years, Freddie Mac said Thursday.

The average rate on 30-year fixed-rate mortgages rose to 6.58 percent for the week ending April 27, up from the prior week's 6.53 percent, according to a Freddie Mac survey. In the year-ago period, the 30-year mortgage averaged 5.78 percent.

The level was the highest since the week of June 20, 2002.

"Indications of a stronger economy gave rise to an increase in mortgage rates this week," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.

"Consumer confidence and existing home sales unexpectedly rose. Much of this strength is attributed to a healthy labor market, which translates into greater consumer spending. This should support an active housing market over the next few months."

The average rate on 15-year fixed-rate mortgages rose to 6.21 percent from 6.17 percent last week. A year ago, that loan averaged 5.33 percent.

Five-year adjustable-rate mortgages averaged 6.21 percent, up from 6.16 percent the prior week. The five-year ARM averaged 5.20 percent last year.

One-year adjustable-rate mortgages averaged 5.68 percent, up from 5.63 percent from the week before. At this time last year, the one-year loan averaged 4.21 percent.

"We expect mortgage rates to gradually rise throughout the year," said Nothaft. "A stronger labor market, coupled with moderation in house price growth, means our outlook for overall housing conditions remains upbeat."