DOW JONES NEWSWIRES
Mortgage rates rose slightly this week, although the average
rate on 30-year fixed-rate mortgages remained under 5% for the
third consecutive week, according to Freddie Mac's (FRE) weekly
survey of mortgage rates.
After yields on Treasurys rose on a rebound from the
multi-decade lows, they have fallen a bit, taking mortgage rates
along with them. However, Treasury yields have climbed in the last
couple weeks, moving some rates from record lows recently seen.
Home sales have rebounded due to the drop in rates and in
prices, plus a $8,000 tax credit for first-time buyers. New-home
sales have gone up for five straight months, according to the
Commerce Department. Earlier this month, National Association of
Realtors data showed pending home sales spiked much more than
expected in August, the seventh consecutive monthly increase to the
highest level in two years.
The 30-year fixed-rate mortgage averaged 4.92% for the week
ended Thursday, up from last week's 4.87% average but down from
6.46% a year ago. Rates on 15-year fixed-rate mortgages were 4.37%,
up from a record low of 4.33% last week but down from 6.14% a year
earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.38%, up from last week's record 4.35% but down from
6.14% a year earlier. One-year Treasury-indexed ARMs were 4.6%, up
from 4.53% last week but down from 5.16% a year earlier.
To obtain the rates, the fixed-rate mortgages required payment
of an average 0.7 point. The five-year adjustable-rate mortgages
required an average 0.6 point, while the one-year required 0.5
point. A point is 1% of the mortgage amount, charged as prepaid
interest.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com