DOW JONES NEWSWIRES
Mortgage rates rose slightly this week on increasing sentiment
that the U.S. economy may be bottoming, but the average rate on
30-year fixed-rate mortgages stayed below 5%, according to Freddie
Mac's (FRE) weekly survey of mortgage rates.
Mortgage rates have fallen in recent months as providers try to
entice buyers amid the housing market downturn. But many consumers
are wary of making the commitment to purchase a home - and many
prospective buyers face challenges getting financing amid the tight
credit market.
The 30-year fixed-rate mortgage averaged 4.84% for the week
ended Thursday, up from last week's 4.78% average and down from
6.05% a year ago. Rates on 15-year fixed-rate mortgages were 4.51%,
up from 4.48% last week and down from 5.6% a year earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.9%, up from 4.8% last week and well below their 5.67%
average a year ago. One-year Treasury-indexed ARMs were 4.78%, up
from 4.77% last week and down from 5.29% a year earlier.
To obtain the rates, the fixed-rate mortgages and the 5-year ARM
required payment of an average 0.7 point and the 1-year ARM
required an average 0.5 point. A point is 1% of the mortgage
amount, charged as prepaid interest.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com