U.S. mortgage rates rise for fourth week in five

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30-year fixed-rate should remain below 6.5% in 2007: economist

By Amy Hoak, MarketWatch
Last Update: 11:54 AM ET Jan 11, 2007

CHICAGO (MarketWatch) -- Mortgage rates edged up in Freddie Mac's weekly survey released on Thursday, the fourth increase in five weeks, lifted by a strong December employment report, the company's chief economist said.

'The gain in employment in December exceeded the consensus forecast, and helped ease fears about the state of the economy,' said Frank Nothaft, Freddie Mac (FRE: news) chief economist, in a statement. 'But stronger employment and higher wages put upward pressure on inflation, which, in turn, translates into higher interest rates.'

The 30-year fixed-rate mortgage averaged 6.21% in the week ending Thursday, up from 6.18% last week. The mortgage averaged 6.15% a year ago.

'We expect rates on 30-year fixed-rate mortgages to remain below 6.5% in the coming"