Mortgage Rates Defy Fed and Rise Again

McLEAN, Va.–Mortgage rates continue to see-saw this week, with the average for long-term rates rising again, after falling last week, according to Freddie Mac.The average for the 30-year, fixed-rate loan moved to 6.13% this week, from 6.03% last week; while the average for the 15-year, fixed-rate mortgage increased to 5.60%, from 5.47%.ARM rates also jumped, with the average for the five-year ARM going to 5.58%, from 5.34% last week; and the average for the one-year ARM going to 5.14%, from 4.94%.Orawin Velz, senior director, Mortgage Bankers Association in Washington, said that so far the housing sector has not benefitted from interest rate cuts by the Federal Reserve."The rates are coming down slower because of the increase in the spread between the 10-year Treasury yield and conforming mortgage rates," said Velz.