Mortgage rates climbed to a two-month high as hopes of any imminent FOMC (Federal Open Market Committee) cuts dematerialize. The prime rate as left the same, no cuts or increases were made. The average 30-year fixed mortgage rate moved 6.46 percent, according to Bankrate.com.

Economic growth is expected to continue to slow through the rest of 2006, according to the latest economic forecast statistics released by the Mortgage Bankers Association. Real estate sales are sluggish and price drops in new home sales dampen the prospects of associated building industry providers and after market sales.