Fixed Rates Rise

The average 30-year fixed mortgage rate rose to 5.85% for the week ending Jan. 2 from 5.81% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.13% to 5.15%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages dipped from 3.73% to 3.72%. Fees and points averaged 0.7 of a point for all three mortgage categories. "The yield curve, at its steepest annual level since 1992, is indicative of a favorable ARM market," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "We have already seen the ARM share of applications double from January to December of this year, and it now represents almost a third of the market." A year ago, the average 30-year and 15-year fixed rates were 5.85% and 5.24%, respectively, and the average one-year ARM rate was 4.06%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.