The Associated Press
McLEAN, Va. (AP) -Rates for 30-year mortgages rose for the second-straight week, Freddie Mac said Thursday.
The average rate for a 30-year fixed mortgage was 5.25 percent this week, up from 5.2 percent last week. Last year at this time, 30-year mortgages averaged 6.52 percent, Freddie Mac said.
Earlier this year, rates on 30-year mortgages fell to a record low of 4.78 percent, kick-starting refinancing activity. Last month, rates rose to nearly 5.6 percent after yields on long-term government debt, which are closely tied to mortgage rates, climbed.
The yield on the benchmark 10-year Treasury note rose to 3.70 percent from 3.67 percent late Wednesday.
"Bond yields rose slightly higher this week on market optimism that the economy may be stabilizing somewhat, and mortgage rates followed those yields," said Frank Nothaft, Freddie Mac's chief economist.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average rate on a 15-year fixed-rate mortgage rose to 4.69 percent, up from 4.68 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages averaged 4.75 percent, up slightly from 4.74 percent last week. Rates on one-year, adjustable-rate mortgages increased to 4.8 percent from 4.77 percent.
The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point for 30-year and 15-year fixed mortgages. Five-year, adjustable-rate mortgages averaged a fee of 0.6 point, and one-year adjustable rate mortgages averaged 0.5 point.