Mortgage rates rise

MCLEAN, Va., Dec. 31 (UPI) -- Freddie Mac of McLean, Va., said Friday that mortgage rates rose during the week ending Dec. 30.

Freddie Mac said the rate on the popular 30-year fixed-rate mortgage rose to an average 5.81 percent, with an average 0.6 in fees and points, up from last week when it averaged 5.75 percent. A year ago, the 30-year loan averaged 5.85 percent.

In 2004 mortgage rates averaged around 5.84 percent, the second lowest annual rate Freddie Mac had ever recorded, said Amy Crews Cutts, Freddie Mac deputy chief economist.

The average rate for the 15-year loan this week was 5.23 percent, with an average 0.6 in fees and points, up from last week when it averaged 5.18 percent. A year ago, the 15-year averaged 5.15 percent.

One-year Treasury-indexed adjustable-rate mortgages averaged 4.19 percent this week, with an average 0.6 in fees, up slightly from last week when it averaged 4.17 percent. A year ago, the one-year averaged 3.72 percent.

Freddie Mac purchases mortgages from lenders and packages them into securities that are sold to investors.