Mortgage rates head back up
| $56B estimated in home commissions |
By Jeannine Aversa
AP Economics Writer
WASHINGTON — Mortgage rates, which had been sliding, went up this week, disappointing news to would-be home buyers.
Freddie Mac, the mortgage company, reported yesterday that 30-year fixed-rate mortgages averaged 6.11 percent. That was up from last week's rate of 5.96 percent, which was the lowest in more than two years. Until this week, rates on 30-year mortgages had been falling or holding steady each week since the middle of October.
Other mortgage rates also moved higher this week.
Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, rose to 5.78 percent, from 5.65 percent last week.
For five-year adjustable-rate mortgages, rates increased to 5.89 percent, compared with 5.75 percent last week. And rates on one-year adjustable-rate mortgages moved up to 5.50 percent, from 5.46 percent last week.
The pickup in mortgage rates around the country comes as some prospective home buyers struggle with a credit crunch that has made it more difficult to secure financing for homes and other big-ticket purchases. The worsening credit crunch has aggravated the housing slump, which is weighing heavily on national economic activity. The odds of a recession have grown.
"The housing segment of the economy still has a way to go before bottoming out," said Frank Nothaft, Freddie Mac's chief economist.
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