Fixed Rates Creep Up; ARM Rate Hits Low

The average 30-year fixed mortgage rate rose to 5.24% for the week ending June 27 from the survey-record low of 5.21% recorded the previous two weeks, while the ARM rate fell to a record low, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 4.62% to 4.63%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages fell from a record low of 3.51% to a new low of 3.45%. Fees and points averaged 0.6 points for all three mortgage categories. "There were further signs this week that the economy may be finally taking a turn for the better," said Frank Nothaft, Freddie Mac's chief economist. "Evidence of this change in momentum can be seen in the Fed's remarks [June 25] that it was taking a neutral bias in terms of future intervention." A year ago, the average 30-year and 15-year fixed rates were 6.55% and 5.99%, respectively, and the average one-year ARM rate was 4.61%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.