Rates On 30-Year Mortgages Edge Up Slightly

Thursday, March 22nd 2007, 11:22 am
By: News On 6

WASHINGTON (AP) _ Rates on 30-year mortgages edged up slightly this week but still remained near the lowest level for the year.

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.16% this week.

That was the second-lowest level for the year, up only slightly from the low for this year of 6.14%, where 30-year rates had been for the two previous weeks.

That was the lowest for 30-year mortgages since they averaged 6.13% the week of Dec. 21.

Analysts said financial markets received conflicting news over the past week with worse-than-expected readings on inflation, which could cause interest rates to rise, followed by Wednesday's decision by the Federal Reserve to signal that rate cuts were possible later this year if the economy remains sluggish.

Frank Nothaft, chief economist at Freddie Mac, said the bond market had basically taken the inflation readings ``in stride.''

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, edged up slightly this week as well, rising to 5.90%, up from 5.88%.

Five-year adjustable rate mortgages averaged 5.91%, up from 5.90% last week.

One-year adjustable mortgages dipped to 5.40%, down from 5.42% last week.

The mortgage rates do not include add-on fees known as points. Thirty-year and 15-year mortgages both carried a nationwide average fee of 0.4 point. The five-year mortgage had an average fee of 0.6 point while the one-year mortgage carried a 0.7 point average fee.

A year ago, rates on 30-year mortgages stood at 6.32% while 15-year mortgages were at 5.97%, five-year adjustable rate mortgages averaged 5.96% and one-year ARMs were at 5.41%.