Rates on 30-year mortgages in the United States climbed this week to the highest level in more than four years as financial markets expect the Federal Reserve to boost rates further to put inflation in check, Freddie Mac reported Thursday.

In the week ending June 22, rates on 30-year, fixed-rate mortgages averaged 6.71 percent, up from 6.63 percent last week, according to the mortgage company's weekly nationwide survey.

This week's rate was the highest level since 30-year mortgages stood at 6.76 percent in the week to May 31, 2002.

Other types of mortgage rates also went up this week. Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, rose to 6.36 percent from 6.25 percent last week.

Rates on one-year adjustable rate mortgages (ARMs) increased to 5.75 percent from 5.66 percent last week. That was the highest level since one-year ARMs averaged 5.77 percent in the week of Aug. 3, 2001.

Meanwhile, rates on five-year ARMs were up to 6.32 percent from 6.23 percent.

A year ago, 30-year mortgages averaged 5.57 percent while 15- year mortgages stood at 5.16 percent, one-year ARMs at 4.23 percent and five-year ARMs at 5.05 percent.

"Financial markets believe that the current rate of inflation is above the Fed's comfort zone, which will lead to more rate hikes in the near future," Freddie Mac's chief economist Frank Nothaft said.

Markets are not only expecting a June rate hike, but there is growing concern the Fed will also raise rates at its August meeting as well, the economist said.

Source: Xinhua