Rates on 30-year mortgages increased for the first time in about a month, rising slightly to an average of 6.12 percent this week from 6.11 percent a week ago. However, they remain close to the 2006 low of 6.10 percent reached during the week ending Jan. 19.

Freddie Mac chief economist Frank Nothaft says the small change was the result of mixed signals from recent data on job growth, retail sales, wage growth, and consumer sentiment. The Federal Reserve held interest rates steady once again this week; and many experts believe the central bank will continue to do so through May or June of next year, with hopes of achieving a soft landing.

Nothaft says he does not think a moderate rise in mortgage rates in the months to come would prevent a rebound in the housing market.

Source: Contra Costa Times (Calif.), Martin Crutsinger (12/15/06)