Mortgage Rates Follow Treasury Yields Higher

After changing little over the past month, both long- and short-term mortgage rates rose this week, with some loan products increasing in the range of 10 basis points.
[IMAGE] Data released by ""Freddie Mac"":http://www.freddiemac.com Thursday puts the average 30-year fixed rate at 4.60 percent (0.7 point) for the week ending July 7. Last week it was 4.51 percent, and it's even higher than a year ago, when 30-year mortgages were averaging 4.57 percent.

The 15-year fixed-rate mortgage this week averaged 3.75 percent (0.7 point), up from 3.69 percent last week but

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below the 4.07 percent average recorded last year at this time.

""Freddie's latest survey"":http://www.freddiemac.com/pmms/ recorded a 3.30 percent (0.6 point) average for 5-year adjustable-rate mortgages (ARMs). That's up from 3.22 percent last week. A year ago, the 5-year ARM averaged 3.75 percent.

The 1-year ARM carried an average rate of 3.01 percent (0.6 point) this week, compared to 2.97 percent last week and 3.75 percent 12 months ago.

Freddie Mac calculates average interest rates based on data from about 125 lenders across the country.

""Mortgage rates followed Treasury yields higher over the holiday week but remain quite affordable by historical standards,"" Freddie's chief economist Frank Nothaft explained. ""Interest rates on all mortgages outstanding in the first quarter of this year averaged just under 6 percent.""

Nothaft added, ""With today's rates, these homeowners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, 30-year fixed mortgage.""