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U.S. Mortgage Rates Rise for First Time in 12 Weeks

Mortgage rates for 30-year U.S. loans rose for the first time in 12 weeks as Americans sought refinancings amid record-low borrowing costs.

The rate for a 30-year fixed loan climbed to 4.35 percent in the week ended today from 4.32 percent, Freddie Mac said in a statement. The average 15-year rate was unchanged at a record low 3.83 percent, the McLean, Virginia-based company said.

A five-month slide in interest rates has spurred homeowners to seek lower monthly payments, with the Mortgage Bankers Association’s index of refinancings more than doubling since the end of April. Banks, as a result, can afford to allow rates to rise slightly, said Keith Gumbinger, vice president of HSH Associates, a publisher of consumer loan data in Pompton Plains, New Jersey. A jump in prepayments may also be pushing down mortgage bonds relative to treasuries, he said.

http://www.bloomberg.com/news/2010-09-09/u-s-mortgage-rates-rise-for-first-time-in-12-weeks-update1-.html