Fixed Rates Rise

The average 30-year fixed mortgage rate rose to 5.75% for the week ending Dec. 24 from 5.68% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.11% to 5.18%, while the average rate for one-year Treasury-indexed ARMs declined from 4.18% to 4.17%. Fees and points averaged 0.6 of a point for all three mortgage categories. "In November, the ARM share of loan applications slipped to 34% from 36% in October, in response to the Fed's sequential actions to push short-term interest rates higher," said Frank Nothaft, Freddie Mac's chief economist. "As ARM rates began to rise, long-term rates showed no inclination to follow, and remained at very affordable and attractive levels." A year ago, the average 30-year and 15-year fixed rates were 5.82% and 5.14%, respectively, and the average one-year ARM rate was 3.77%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.