Interest Rates Hit a 5-Month High

The average interest rate on 30-year fixed-rate mortgages advanced to 7.17%, up from 7.09% last week, Freddie Mac said. This week’s rate was the highest since the week ending July 13, when 30-year mortgages averaged 7.21%.

Rates on 30-year mortgages fell to 6.45% in early November, the lowest level since Freddie Mac began conducting its nationwide survey in 1971. Since then, rates have generally been rising as the bond market detected signs that the recession might be bottoming out.

Fifteen-year mortgages, a popular option for refinancing, rose to 6.65% from 6.57%.

On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 5.27%, down slightly from 5.19% the previous week.