MCLEAN, Va., Feb. 9 (UPI) -- U.S. mortgage interest rates rose slightly last week, with the 30-year fixed note averaging between 6.24 percent and 6.32 percent.
Fixed mortgage rates moved slightly higher due to a busy week of debt issuance by the U.S. Treasury, said Bankrate.com.
The Treasury is conducting a three-day, $48 billion auction of government securities that will include the first 30-year government bond auction in nearly five years. The additional supply depresses bond prices and lifts bond yields. Fixed mortgage rates are closely related to yields on long-term government bonds.
Frank Nothaft, Freddie Mac's chief economist, said, "We see this trend continuing throughout 2006 ... as the housing market eases back from last year's record-setting levels toward a somewhat more normal rate of activity."
Bankrate.com said fixed rates continue to represent an attractive refinancing option for holders of adjustable rate mortgages.
