DOW JONES NEWSWIRES
Mortgage rates fell modestly this week after moving higher last
month, according to Freddie Mac's (FRE) weekly survey of mortgage
rates.
After sinking to historic lows earlier this year, rates on the
benchmark 30-year fixed-rate mortgage rose back above 5% as
Treasurys gave up some of their gains and homebuying activity
picked up. Higher Treasury yields generally result in higher
mortgage rates.
The 30-year fixed-rate mortgage averaged 5.22% for the week
ended Thursday, down from last week's 5.25% average and 6.52% a
year ago.
Rates on 15-year fixed-rate mortgages were 4.63%, down from
4.69% last week and 6.1% a year earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.73%, down from last week's 4.75% and 6.05% a year
earlier. One-year Treasury-indexed ARMs were 4.78%, down from 4.8%
last week and 5.22% last year.
To obtain the rates, the fixed-rate mortgages and the five-year
adjustable rate required payment of an average 0.6 point and the
one-year ARM required an average 0.5 point. A point is 1% of the
mortgage amount, charged as prepaid interest.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com