Mortgage rates rise

Mortgage rates rise

Lara Moscrip, CNNMoney.com contributing writer
Thursday February 26, 2009, 12:38 pm EST

Mortgage rates rose over the past week, as home prices and sales fell and the government issues massive amounts of debt to pay for federal spending.
The average 30-year fixed mortgage rose to 5.41% for the week ended Feb. 25 from 5.34% the week prior, according to Bankrate.com. The average jumbo 30-year fixed rate slipped to 6.87% from 6.92%.
It's likely mortgage rates will remain at their historically low levels, as money is funneled into the perceived safety of Treasurys, driving down interest rates and keeping mortgage rates low, according to Patrick Newport, an economist at IHS Global Insight.
"As long as the economy remains weak, mortgage rates are probably not going to go up very much," Newport said.
The average 15-year fixed rate mortgage was unchanged at 4.93%.
Adjustable-rate mortgages were mixed, with the 1-year ARM increasing to 5.58% from 5.47%; the 5/1 adjustable-rate mortgage rose to 5.4% from 5.37%.
This week, the Treasury is offering a record $94 billion debt over three days, including $22 billion in 7-year notes being auctioned Thursday.
In January, sales of newly constructed homes fell 10%, to the lowest level on record, while the median sales price of new houses sold fell 15% from a year ago, according to a government report.
Bankrate.com's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.