DOW JONES NEWSWIRES
Mortgage rates rose slightly this week, with the average rate on
30-year fixed-rate mortgages moving further above 5%, according to
Freddie Mac's (FRE) weekly survey of mortgage rates.
Mortgage rates had fallen earlier this year as providers try to
entice buyers amid the housing market downturn, but yields on
Treasurys have since rebounded from decade lows, bringing mortgage
rates along with them.
Wednesday, the Commerce Department reported new-home sales rose
for the fourth month in a row in July, helping to reduce the number
of new unsold houses on the market. Separate data showed
existing-home sales reaching a two-year high on an annual basis
during the month.
The 30-year fixed-rate mortgage averaged 5.14% for the week
ended Thursday, up from last week's 5.12% average but down from
6.4% a year ago. Rates on 15-year fixed-rate mortgages were 4.58%,
up from 4.56% last week but down from 5.93% a year earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.67%, up from last week's 4.57% but down from 6.03% a
year earlier. One-year Treasury-indexed ARMs were 4.69%, flat with
last week's rate and down from 5.33% last year.
To obtain the rates, the fixed-rate mortgages required payment
of an average 0.7 point and the adjustable-rate mortgages required
an average 0.6 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