11th Rate Increase

The federal funds rate went up again, but mortgage rates are usually raised in advance of that increase. The rate on the 30-year mortgage varies slightly by region, but the average rate at 5.72 percent, according to the Morgage Bankers Association survey, is still low compared to rates in the last 10-40 years. While some thought that the Hurricane Katrina disaster might keep the Federal Reserve from taking this action, the Federal Reserve may well be raising rates again according to their own perspective.