U.S. 30-, 15-year mortgage rates up for a 6th week
WASHINGTON, May 4 (Reuters) - Average interest rates on U.S. 30- and 15-year fixed rate mortgages rose for a sixth straight week, according to a survey released by mortgage finance company Freddie Mac (FRE.N: Quote, Profile, Research) on Thursday.
Rates on U.S. 30-year mortgages edged up to an average of 6.59 percent, the highest since June 2002, from 6.58 percent the prior week.
Fifteen-year mortgages also rose to an average of 6.22 percent, the highest since a matching rate in late May 2002, from 6.21 percent last week.
One-year adjustable rate mortgages averaged 5.67 percent, down from 5.68 percent a week earlier.
A year ago, 30-year mortgages averaged 5.75 percent, 15-year mortgages 5.31 percent and the one-year ARM 4.22 percent, Freddie Mac said.
"Mortgage rates have drifted upward for the sixth week running, which is consistent with Freddie Mac's economic forecast," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement. "We expect that the mortgages rates will continue to trend upward over the coming year, but that upward trend will be modest at best."
Nothaft said the rise in mortgage rates would affect refinancing activity. "Fewer families will be refinancing, but of those who are, a larger percentage will be drawing some equity out of their homes, many to pay off previously existing home equity loans and lines of credit as those loans become more expensive," he said.
On Friday the Labor Department will release its U.S. employment report for April.
Lenders charged an average of 0.6 percent in fees and points on 30- and 15-year mortgages, both up from 0.5 percent last week. They charged 0.8 percent on the one-year ARM, up from 0.7 percent.
The hybrid "5/1" ARM, set at a fixed rate for five years, then adjustable each year following, averaged 6.21 percent, unchanged from last week, but up from 5.16 percent a year earlier.
Freddie Mac is a mortgage finance company chartered by Congress that buys mortgages from lenders and packages them into securities to sell to investors or to hold in its own portfolio.
Rates on U.S. 30-year mortgages edged up to an average of 6.59 percent, the highest since June 2002, from 6.58 percent the prior week.
Fifteen-year mortgages also rose to an average of 6.22 percent, the highest since a matching rate in late May 2002, from 6.21 percent last week.
One-year adjustable rate mortgages averaged 5.67 percent, down from 5.68 percent a week earlier.
A year ago, 30-year mortgages averaged 5.75 percent, 15-year mortgages 5.31 percent and the one-year ARM 4.22 percent, Freddie Mac said.
"Mortgage rates have drifted upward for the sixth week running, which is consistent with Freddie Mac's economic forecast," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement. "We expect that the mortgages rates will continue to trend upward over the coming year, but that upward trend will be modest at best."
Nothaft said the rise in mortgage rates would affect refinancing activity. "Fewer families will be refinancing, but of those who are, a larger percentage will be drawing some equity out of their homes, many to pay off previously existing home equity loans and lines of credit as those loans become more expensive," he said.
On Friday the Labor Department will release its U.S. employment report for April.
Lenders charged an average of 0.6 percent in fees and points on 30- and 15-year mortgages, both up from 0.5 percent last week. They charged 0.8 percent on the one-year ARM, up from 0.7 percent.
The hybrid "5/1" ARM, set at a fixed rate for five years, then adjustable each year following, averaged 6.21 percent, unchanged from last week, but up from 5.16 percent a year earlier.
Freddie Mac is a mortgage finance company chartered by Congress that buys mortgages from lenders and packages them into securities to sell to investors or to hold in its own portfolio.
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