Mortgage rates up, 30-year hits 5.8%

Mortgage rates rose this week, a Freddie Mac survey said, and an economist at the government-chartered lender said the housing market is likely to slow.

Freddie Mac said the average rate on 30-year fixed-rate mortgages rose to 5.80 percent this week, up from last week's 5.74 percent.

In the year-ago period, the 30-year mortgage averaged 5.70 percent.

The average rate on 15-year fixed rate mortgages edged higher to 5.37 percent, up from 5.32 percent the previous week. The loan averaged 5.10 percent last year.

"Mortgage rates look like they are back on track where the Fed wants them, which is gradually rising," said Frank Nothaft, vice president and chief economist at Freddie Mac. "Freddie Mac's economic forecast calls for a cooling of the housing market going into next year, and gently rising rates are part of that scenario.

"However, the resiliency of the housing sector continues to amaze," said Nothaft. "2005 will be another banner year for the housing industry."

Five-year adjustable-rate mortgages averaged 5.31 percent, compared to 5.26 percent the previous week. There is no data available for a year-to-year comparisons since Freddie Mac only began tracking the 5-year loans this year.

One-year adjustable-rate mortgages averaged 4.48 percent, up slightly from 4.46 percent the week before. At this time last year, the one-year loan averaged 4.00 percent.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.