Business

<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Sunday, October 5, 2008 Mortgages Rates on 30-year mortgages have risen for a second straight week, climbing to the highest level in a month. Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.10 percent this week, up slightly from 6.09 percent last week. It was the highest level since 30-year mortgages averaged 6.35 percent for the week ending Sept. 4. Financial markets have been turbulent in recent weeks as demand for safe-haven Treasury securities has pushed those yields down sharply while rates on other types of corporate bonds have been pushed higher by growing concerns about whether the bonds will be repaid. Those crosscurrents have been reflected in mortgage rates, which also have been on a roller coaster, hitting a high for the year of 6.63 percent in late July and then dropping below 6 percent in mid-September. The recent turmoil in credit markets has pushed those rates up from a seven-month low of 5.78 percent on Sept. 18, to above 6 percent for the past two weeks. Other rates were mixed this week, according to the Freddie Mac survey. Rates on 15-year fixed-rate mortgages, which are popular with people who are refinancing, edged up to 5.78 percent, compared to 5.77 percent last week. Rates on five-year adjustable-rate mortgages dipped slightly to 6 percent from 6.02 percent last week. Rates on one-year adjustable-rate mortgages were unchanged at 5.16 percent. Frank Nothaft, chief economist at Freddie Mac, noted that the rise in mortgage rates from lows hit two weeks ago had dampened a spurt in refinancings. The Mortgage Bankers Association reported that loan applications fell 23 percent last week. The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year, 15-year and five-year mortgages averaged 0.6 point. The average fee for one-year adjustable-rate mortgages was 0.5 point. A year ago, the nationwide average rate on 30-year mortgages stood at 6.37 percent, 15-year mortgage rates averaged 6.03 percent, five-year adjustable-rate mortgages were at 6.11 percent, and one-year adjustable-rate mortgages stood at 5.58 percent. Send your real estate news to Mike Benbow, Business editor, The Herald, P.O. Box 930, Everett, WA 98206, by fax at 425-339-3435 or by e-mail at economy@heraldnet.com. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

1. Waves wash away Explosion's title hopes 2. You've got your pick of Fourth of July fun 3. Snohomish entrepreneur bounces back with new venture 4. Inslee downplays fears Boeing will send second 787 line elsewhere 5. Popular park changing hands 6. Deputies shoot armed man near Arlington 7. Why, governor? 8. Edmonds backs off red-light cameras 9. Vehicle that killed girl was Chevy Astro minivan 10. Arlington buys up more water rights 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Warriors looking for balance • Three Scots vying for QB slot • Jackson looks for another title • Decorated veteran continues to serve as active volunteer • City Council reviewing sign regulations • Wildcats get a peek at newcomers • Lynnwood still in rebuilding mode • Shoreline feels a kindergarten growth spurt • Leave the patriotic pyrotechnics to professionals, cities urge • Trading dollars for kilowatts New PUD energy conservation programs save ... • By John Wolcott SCBJ Editor • Record crowd at Paine Field’s General Aviation Day as FHC Celebrate ... • Celebration of aviation's history and future presented in multiple venue ... • The time is ripe for small businesses to take no prisoners • EPA proposal to regulate global-warming gases would be costly for small ... • Innovation helps the town of Forks to offset tough economy • Powering the people