DOW JONES NEWSWIRES
Long-range fixed mortgage rates surged this week, following the
recent yield gains on similar-length Treasurys, pushing the average
rate on 30-year fixed-rate mortgages above 5% and reaching a
six-month high, 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 Treasurys have
continued to fall in price amid worries of the flood of supply
being sold by the federal government to finance its ballooning
deficit.
The 30-year fixed-rate mortgage averaged 5.29% for the week
ended Thursday, up from last week's 4.91% average but down from
6.09% a year earlier. Rates on 15-year fixed-rate mortgages were
4.79%, up from 4.53%. The prior-year average was 5.65%.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.85%, up from 4.82% last week and well below their 5.51%
average a year ago. One-year Treasury-indexed ARMs were 4.81%,
compared with 4.69% and 5.06%, 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.
-By Kerry E. Grace and Kevin Kingsbury, Dow Jones Newswires;
201-938-5089; kerry.grace@dowjones.com