CALIFORNIA : BRIEFLY / THE ECONOMY : Mortgage Rates Rise, Jobless Claims Dip

The average interest rate on 30-year, fixed-rate mortgages rose slightly to 7.88% this week from 7.83% last week, Freddie Mac said. Mortgages rates have been on an upward climb, from a low of 6.74% for 30-year mortgages at the end of January to a high of 8.15% in mid-August. Fifteen-year mortgages, a popular option for refinancing, averaged 7.49% this week, also up from last week’s average of 7.45%. On one-year, adjustable-rate mortgages, lenders were asking an average initial rate of 6.21% this week, up from 6.18% the previous week. Separately, the Labor Department said new claims for unemployment benefits unexpectedly declined last week, by 4,000 to 286,000. Many economists had forecast a slight rise in claims to about 290,000. The four-week moving average for claims, which smooths out week-to-week volatility, rose by just 750 to 287,500 last week. Economists consider jobless claims levels below 300,000 an indication of an extremely tight labor market.