Rates on 30-year mortgages up slightly

WASHINGTON - 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 yesterday 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 ended 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.

Rates on 15-year fixed-rate mortgages, popular for refinancing, rose to 5.78 percent, versus 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 the rise in mortgage rates from lows hit two weeks ago had dampened a spurt in refinancings. The Mortgage Bankers Association said loan applications fell 23 percent last week.