Mortgage Rates Rise for Third Week

Interest rates on 30-and 15-year mortgages rose for the third week in a row amid sentiment that the recession might not be as severe as predicted, Freddie Mac said.

Thirty-year mortgages posted their largest one-week gain since Oct. 16, 1998, rising to 7.02% from 6.75% the previous week. The rate has climbed 57 basis points since hitting an all-time low Nov. 9. Fifteen-year mortgages rose to 6.53%, up from 6.24% last week.

One-year adjustable rate mortgages edged up to an average 5.22% from 5.18% last week.

A year ago, 30-year mortgages averaged 7.65%, 15-year mortgages 7.35% and adjustable-rate mortgages 7.24%.

Freddie Mac said lenders charged an average 0.7% in fees and points on 30-and 15-year mortgages, down from 0.8% a week ago. The one-year ARM held at 0.8%.