Industry NewsMortgage

Demand for mortgages surges as rates edge up

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Fixed mortgage rates edged up this week but remain near all-time lows as the Federal Reserve continues to buy $40 billion in mortgage-backed securities issued by Fannie Mae and Freddie Mac each month to make borrowing more affordable.Rates on 30-year fixed-rate mortgages averaged 3.42 percent with an average 0.7 point for the week ending Jan. 24, up from 3.38 percent last week but down from 3.98 percent a year ago, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey. Rates on 30-year fixed-rate loans hit a low in Freddie Mac records dating to 1971 of 3.31 percent during the week ending Nov. 21, 2012.For 15-year fixed-rate mortgages, rates averaged 2.71 percent with an average 0.7 point, up from 2.66 percent last week but down from 3.24 percent a year ago. Rates on 15-year fixed-rate loans hit a low in Freddie Mac records dating to 1991 of 2.63 percent during the week ending Nov. 21, 2012.Rates on five-year Treasury-indexed hybrid adjustable-rate mortg...