Mortgage rates rise in week

WASHINGTON, June 4 (UPI) -- Interest rates for 30-year, fixed-rate U.S. mortgages increased in the week ending June 4, the Federal Home Loan Mortgage Corp. said Thursday.

The 30-year, fixed-rate mortgage averaged 5.29 percent with an average 0.7 points, Freddie Mac said.

A week ago, 30-year, fixed-rate mortgages averaged 4.91 percent with an average 0.7 points. A year ago, the average rate was 6.09 percent.

At 4.79 percent with an average 0.7 points, the 15-year, fixed-rate average also increased. A week ago, 15-year, fixed rate mortgages averaged 4.53 percent. A year ago, they averaged 5.65 percent, the report said.

Long-term interest rates "caught up to the recent rise in long-term bond yields this week to reach a 25-week high," said Frank Nothaft, Freddie Mac vice president and chief economist.

"Yet, there are signs that the housing market may be moderating," he said.

Housing affordability rose in April, Nothaft noted. "As a result, pending existing home sales rose for the third consecutive month by 6.7 percent in April and represented the largest monthly increase since October 2001," he said in a statement.