After slipping last week, mortgage rates moved up this week better reflecting the trend borrowers can expect in the coming months. That means iron-clad mortgage rate locks and speedy loan closings should be the strategy of choice for home buyers as well as refinancing and equity-tapping home owners. Inflation was brisk in May spurred by higher housing, gasoline and energy costs. The seasonally adjusted Consumer Price Index rose 0.4 percent in May, representing a 5.2 percent annual rate. For all of 2005 the rate was only 3.4 percent.

When the fed increases the cost of money to curb inflation, short term consumer borrowing costs for credit cards, home equity loans and adjustable rate mortgages likewise take a hike. Mortgage interest rates have fallen eight times this year, but during the first 24 weeks in 2006 they’ve risen twice as often, according to Freddie Mac’s Primary Mortgage Market Survey. Last week, Freddie reported the 30-year fixed-rate mortgage (FRM) averaged 6.62 percent, down from the previous week s average of 6.67 percent.

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