Mortgage Rates Continue To Rise

Washington, DC, July 31, 2009--Mortgage rates rose for a second consecutive week, which could pressure property sales.

The average 30-year rate increased to 5.25 percent from 5.2 percent, mortgage buyer Freddie Mac of McLean, Virginia, said. The 15-year rate was 4.69 percent.

New and existing-home sales rose in June as falling prices and a government tax credit helped lure buyers. The S&P/Case- Shiller home price index rose 0.5 percent in May from the prior month, the first gain since July 2006. Existing home sales climbed 3.6 percent to an annual rate of 4.89 million, according to the National Association of Realtors.

New home sales rose 11 percent in June, the biggest gain in eight years as homebuilders reduced prices, the Commerce Department said on July 27. The median price fell 12 percent from a year earlier to $206,200.

The jump in sales of existing homes exceeded analysts’ estimates and marked June as the market’s strongest month since October, the Chicago-based National Association of Realtors said July 23.

The median existing home price fell 15 percent from a year earlier to $181,800.