Mortgages rise but still low

BY JEANNINE AVERSA

ASSOCIATED PRESS

Mortgage rates around the country went up last week, although 30-year mortgages still were below 6 percent for a sixth straight week.



Freddie Mac, in its weekly survey released Thursday, reported that rates on 30-year, fixed-rate mortgages rose to 5.83 percent for the week ending Sept. 9.



That was up from 5.77 percent the week before.



Rates on 30-year mortgages hit a high this year of 6.34 percent the week of May 13.



They drifted down slowly as economic activity cooled in the late spring and early summer and moved up amid recent signs the economy may be emerging from its soft patch, analysts said.



Frank Nothaft, Freddie Mac's chief economist, said rates on 30-year mortgages could rise gradually to about 6 percent by the end of the year -- a level that still would be low by historical standards.



"Low mortgage rates will sustain a brisk housing market, leading to record home sales and single-family construction this year," he said.



For 15-year, fixed-rate mortgages, a popular option for refinancing, rates increased to 5.22 percent last week, compared with 5.15 percent the previous week. Rates on one-year adjustable rate mortgages rose to 4 percent, up slightly from 3.97 percent.



The nationwide averages for mortgage rates do not include add-on fees known as points. The 30-year and 15-year mortgages each carried a 0.8-point fee. One-year ARMs carried an average 0.7-point fee.



A year ago, rates on 30-year mortgages averaged 6.44 percent, 15-year mortgages were at 5.77 percent and one-year ARMs were 3.98 percent.



The Mortgage Bankers Association, meanwhile, said refinancing accounted for 41.4 percent of all home mortgage applications filed last week, up from 40.7 percent the previous week.