After declining steadily since September 1996, 30-year fixed mortgage rates have jumped 40 basis points from December's low of 7.38%. Fifteen-year fixed rates have followed a similar pattern, while one-year adjustable rates have risen somewhat less. Nonetheless, analysts generally agree that this recent upward trend will not continue indefinitely if economic growth remains relatively stable and inflation moderates.
Suggested citation: “Housing Finance,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-02, pp. 15, 02.01.1997.