Mortgage rates creeping up, Freddie Mac survey shows

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Fixed interest rates on home loans crept back up a bit in the week ending today, according to the latest survey by Freddie Mac.

The giant, government-controlled mortgage company said fixed rates for a 30-year loan averaged 4.92% with an additional 0.7% of the mortgage amount paid in upfront fees and points. That was up from 4.87%, also with 0.7% in upfront costs, a week earlier and down from 6.46% a year ago.

The average rate for a 15-year fixed-rate mortgage, a popular option for people refinancing to pay their loans off faster, was 4.37% this week with similar fees and points, Freddie Mac said. That was up from 4.33% a week earlier and down from 6.14% a year ago.

Despite the uptick, it was the third straight week in which typical 30-year rates as determined by the Freddie Mac survey were below 5%.

A separate survey by the Mortgage Bankers Assn. this week found that the typical rate had edged back up to 5.02%. The group expects the interest rate to rise to 5.6% by the end of next year.

Mortgage professionals say the surveys are useful as indicators of price trends. However, not everyone should expect to obtain home loans at the rates in the surveys, which assume solid credit and 20% down payments.

-- E. Scott Reckard