Mortgage Rate Inches Back Toward 5%

Mortgage rates mostly fell in the past week, with 30-year fixed-rate mortgages edging toward 5%, according to a survey by Freddie Mac.

Chief Economist Frank Nothaft noted home sales, especially for lower-priced homes, have improved as the economy gets better. Also, "with fixed mortgage rates staying near a record low, many homeowners are taking the opportunity to refinance."

The 30-year fixed rate averaged 5.06% for the week ended Thursday, down from last week's 5.09%, according to Freddie's Primary Mortgage Market Survey. A year earlier, the rate was 4.96%. The 15-year fixed-rate mortgage rate fell to 4.45% from 4.5% and 4.65%, respectively.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.32% this week, down from last week's 4.44% and the prior year's 5.25%. One-year Treasury-indexed adjustable-rate mortgages rose to 4.39% from 4.31%; the year-earlier average was 4.89%.

Meanwhile, mortgage applications rose a seasonally adjusted 14.3% during the week ending Jan. 8, compared with the week before, the Mortgage Bankers Association said earlier this week.