WASHINGTON – Rates on 30-year mortgages rose for the first time this year after four straight weekly declines.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 5.68 percent this week, up from 5.48 percent last week. That had been the lowest level for 30-year mortgages in nearly four years.
Economists attributed the slight increase to the rebound in rates that occurred on Treasury bond markets. Rates on 30-year mortgages are heavily influenced by the direction taken by 10-year Treasury bonds.
The Federal Reserve on Wednesday cut a key interest rate for the second time in just over a week as it continued an aggressive effort to lower borrowing costs to keep the economy from falling into recession.
Frank Nothaft, chief economist at Freddie Mac, said various mortgage rates showed slight increases, gains that he said were “broadly consistent with the movements of Treasury bonds over the week.”
Even with the increase, the 30-year mortgage rate remained below 6 percent for the fifth straight week. Analysts are hoping this low level for mortgage rates will help spur a rebound in the housing market, which suffered steep declines last year in sales of both new and existing homes.
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