30-Year Mortgage Rates Rise

Rates on a 30-year, fixed-rate mortgage averaged 6.62%, up from 6.60% last week and the highest since the week that ended June 20, 2002, mortgage company Freddie Mac said.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, rose to 6.23%, up from 6.20% last week. Rates for one-year adjustable-rate mortgages averaged 5.61%, down slightly from 5.62% last week. Rates on five-year adjustable-rate mortgages also edged down slightly, dropping to 6.21%, from 6.23% last week.

The mortgage rates do not include add-on fees known as points. The 30-year and 15-year mortgages carried an average fee of 0.4 point. The one-year ARM had an average fee of 0.7 point, and the five-year ARM carried an average fee of 0.6 point.

home loan demand falls despite lower rates

By Julie Haviv

NEW YORK, May 24 (Reuters) - U.S. mortgage applications fell last week, driven by a steep decline in home purchasing loans even as interest rates dropped, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended May 19 decreased 6.0 percent to 552.6 from the previous week's 588.0.

The MBA's seasonally adjusted purchase mortgage index fell 7.1 percent to 396.4. The purchase index -- considered a timely gauge of U.S. home sales -- was also below its year-ago level of 482.3.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.61 percent, down 0.05 percentage point from the previous week, which was its highest level in nearly four years.

The group's seasonally adjusted index of refinancing applications decreased 4.3 percent to 1,480.5. A year earlier the index stood at 2,167.9.

The refinance share of mortgage activity increased to 35.7 percent of total applications from 35.0 percent the previous week.

Historically low mortgage rates have fueled a five-year housing boom, helping support the U.S. economy's recovery from recession despite uncertain business investment.

Analysts differ on whether or not there is a housing bubble, but most agree that the market is cooling off from its record run.

Fixed 15-year mortgage rates averaged 6.23 percent, down from 6.26 percent the previous week. Rates on one-year adjustable-rate mortgages (ARMs) decreased to 6.02 percent from 6.07 percent.

ARMs have been a refuge for cash-strapped consumers seeking to buy a home with low initial mortgage payments. Rates on ARMs, however, have been rising less than fixed-rate mortgages, which is possibly why demand for floating-rate products increased last week.

The ARM share of activity rose to 30.5 percent of total applications last week from 29.9 percent the previous week.

The MBA's survey covers about 50 percent of all U.S. retail residential mortgage originations. Respondents include mortgage bankers, commercial banks and thrifts.

Mortgage rates unchanged on Monday

NEW YORK, May 22 (Reuters) - The average rate on a 30-year U.S. mortgage with no upfront points was unchanged on Monday at 6-7/8 percent, according to BestInfo Inc.

If the mortgage market on Tuesday continues in its current direction, rates may remain the same.

The 30-year mortgage rate with one upfront point was unchanged at 6-5/8 percent.

The 30-year mortgage rate with two upfront points was unchanged at 6-3/8 percent.

Mortgage rates unchanged on Monday

NEW YORK, May 22 (Reuters) - The average rate on a 30-year U.S. mortgage with no upfront points was unchanged on Monday at 6-7/8 percent, according to BestInfo Inc.

If the mortgage market on Tuesday continues in its current direction, rates may remain the same.

The 30-year mortgage rate with one upfront point was unchanged at 6-5/8 percent.

The 30-year mortgage rate with two upfront points was unchanged at 6-3/8 percent.