Fixed Rates Rise

The average 30-year fixed mortgage rate rose from 6.34% to 6.42% for the seven-day period ended Sept. 27, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.98% to 6.09%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 6.21% to 6.15%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.65% to 5.60%, Freddie Mac reported. Fees and points averaged 0.5 of a point for fixed-rate mortgages and hybrid ARMs, and 0.6 of a point for one-year ARMs. "Consistent with the direction of 10-year Treasury securities, average rates on 30-year fixed-rate mortgages drifted up in the past week to levels close to those at the beginning of the month," said Frank Nothaft, Freddie Mac's chief economist. "Also tracking short-term Treasury notes, average rates on one-year adjustable-rate mortgages dropped by 5 hundredths of a percent. Though it is the fourth consecutive eek rates on ARMs have declined, the share of mortgage applications for ARMs has been trending down, and last week reached its lowest level since March 2003, according to the Mortgage Bankers Association." A year ago, the average 30-year and 15-year fixed rates were 6.31% and 5.98%, respectively, and the average hybrid and one-year ARM rates were 6.00% and 5.47%, Freddie Mac said. Freddie can be found online at http://www.freddiemac.com.