Mortgage rates climb past 6%

Market uncertainty over the state of the economy helped push interest rates for some mortgages back up above 6 percent this week, Freddie Mac said in releasing its weekly rate survey.

The 30-year fixed-rate mortgage (FRM) averaged 6.09 percent with an average 0.7 point for the week ending Sept. 25, up from 5.78 percent a week ago but well below the 6.63 percent peak for the year seen in July. A year ago, lenders were charging 6.42 percent for 30-year FRMs.

The 15-year FRM averaged 5.77 percent with an average 0.6 point, up from 5.35 percent last week but down from 6.09 percent a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.02 percent with an average 0.6 point, up from 5.67 percent last week but down from 6.15 percent a year ago.

One-year Treasury-indexed ARMs averaged 5.16 percent with an average 0.5 point, up from 5.03 percent last week but down from 5.6 percent a year ago.

"Mortgage rates followed Treasury bond yields higher this week amid market uncertainty over the current state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. Yields on 10-year Treasurys are up about 0.3 percentage points from last Thursday, Nothaft said, and rates on 30-year fixed-rate loans moved up by about the same amount.

The Mortgage Bankers Association reported similar interest-rate increases Wednesday and said an index measuring mortgage application volume showed demand for mortgages fell 10.6 percent during the week ending Sept. 19 (see story).

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