DOW JONES NEWSWIRES
Mortgage rates were mostly higher again this week as long-dated
Treasury yields continued to increase, according to Freddie Mac's
(FRE) weekly survey of mortgage rates, released Thursday.
Mortgage rates had 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 4.91% for the week
ended Thursday, up from last week's 4.82% average and down from
6.08% a year ago. Rates on 15-year fixed-rate mortgages were 4.53%,
compared with 4.50% and 5.66%, respectively.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.82%, up from 4.79% last week and well below their 5.62%
average a year ago. One-year Treasury-indexed ARMs were 4.69%, down
from 4.82% and 5.22%, respectively.
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.
Despite the recent uptick in most rates, Freddie chief economist
Frank Nothaft said there are reason to be optimistic as consumer
confidence as surged from moribund levels the past two months.
-By Kerry E. Grace and Kevin Kingsbury, Dow Jones Newswires;
201-938-5089; kerry.grace@dowjones.com