Fixed mortgage rates rise slightly

Interest rates on fixed-rate home loans edged higher for a second week after scraping bottom, but the cost of a popular type of adjustable-rate mortgage fell slightly, Freddie Mac said Thursday.

Lenders surveyed by Freddie Mac this week were offering well-qualified borrowers interest rates on 30-year loans averaging 4.23% with 0.8% of the loan amount paid in upfront fees. Last week, the average was 4.21%.

The rate on a 15-year fixed-rate mortgage rose to 3.66% from 3.64% last week. Upfront fees averaged 0.7%.

Two weeks ago fixed rates offered by lenders fell to the lowest levels recorded in the Freddie Mac survey: 4.19% on 30-year mortgages and 3.62% on 15-year loans. The mortgage giant began tracking 30-year rates in 1971 and 15-year rates in 1991.

Mortgage rates tend to track yields on U.S. government bonds. The benchmark 10-year Treasury note’s yield sank to 2.39% on Oct. 7, its lowest level since January 2009, but has since rebounded, topping 2.7% on Wednesday.

Borrowers who don’t expect to stay in their homes longer than five years often consider “hybrid” adjustable-rate mortgages that have a fixed rate for the first five years before becoming variable for the remaining 25 years. The average initial rate on such loans fell to a record low of 3.41% this week from 3.45% last week. Upfront fees averaged 0.6%.

Freddie Mac’s survey asks lenders the terms they are offering to a borrower who has a down payment of at least 20% or, for homeowners who are refinancing, at least 20% home equity.

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