US mortgage rates at peak since July 2006-BestInfo

NEW YORK, June 12 (Reuters) - The average rate on a 30-year U.S. mortgage with no upfront points increased by 1/8 percentage point on Tuesday to 7-1/8 percent, the highest since July 3, 2006, according to BestInfo Inc.

That rate also rose by 1/8 point on Monday, reaching 7 percent for the first time since July 18, 2006, according to David Beadle, president of BestInfo.

On Tuesday, the 30-year mortgage rate with one upfront point rose 1/8 percentage point to 6-7/8 percent.

The 30-year mortgage rate with two upfront points increased 1/8 percentage point to 6-5/8 percent.

Rates may rise further if the mortgage market on Wednesday maintains its current direction, BestInfo said.

The Mortgage Point Monitor is provided exclusively to Reuters by BestInfo, Inc., a Dover, Vermont-based provider of mortgage market analysis.