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Mortgage rates rise, Freddie Mac says

Mortgage rates rise, Freddie Mac says
U.S. home prices are slightly above the peak set in July 2006, according to the Case-Shiller national home price index. (Bryan Chan / Los Angeles Times)

Interest rates for fixed-rate mortgages rose this week, with the average on a 30-year loan reaching 3.80%, up from 3.68% a week earlier, Freddie Mac said Thursday.

The mortgage finance giant's weekly survey showed that lenders on average offered a 15-year fixed-rate loan at 3.02%, up from 2.94% last week.

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The initial rate on loans fixed for five years before adjusting rose as well, to 2.90% from 2.85 % last week.

A sell-off in German bonds helped drive U.S. Treasury yields up, said Len Kiefer, deputy chief economist with Freddie Mac. Mortgage rates tend to track the Treasury yield.

The cost of borrowing is still low by historical standards, however. A year ago, the average interest rate on a 30-year fixed mortgage was 4.21%.

Freddie Mac's survey asks lenders each week about the terms they offer low-risk borrowers on loans up to $417,000.

Actual rates are influenced by many factors, including a borrower's debt load and credit history.

Follow me on Twitter: @khouriandrew

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