Mortgage rates rose slightly this week, to 5% with 0.7 points paid by the consumer, according to Freddie Mac's latest primary market survey. A year ago mortgages rates were 100 basis points higher. The reading reflects the average interest rate on a 30-year fixed-rate loan. Freddie also found that the average rate on a 15-year loan was 4.43% (0.6 points paid) compared to last week's rate of 4.37%. The one-year ARM rate, however, fell to 4.54% from 4.60% last week. Mortgage and housing economists fear that rates could rise dramatically next year when the Federal Reserve reduces its MBS purchases.
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