30-year mortgage rates rise to 6.42 percent

WASHINGTON — Rates on 30-year mortgages rose for a second straight week, a sharp rebound after hitting a four-month low.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.42 percent this week, up from 6.34 percent last week.

Two weeks ago, the nationwide average for 30-year mortgages had dipped to 6.31 percent, the lowest level since May 17. That decline reflected a flight to safety after the turbulence in credit markets, which had increased demand for Treasury securities. Those securities heavily influence mortgage rates.

Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 6.09 percent this week, up from 5.98 percent last week.

While rates on 30-year and 15-year mortgages rose this week, rates on five-year adjustable-rate mortgages and one-year ARMs declined for a fourth straight week.

The Federal Reserve, which influences short-term rates, announced last week that it was cutting a key rate by a more-than-expected half point in an effort to make sure that a steep slump in housing and financial market turbulence don’t push the economy into a recession.

The Commerce Department reported Thursday that sales of new homes fell by 8.3 percent in August to a seasonally adjusted annual rate of 795,000 units, the slowest level in seven years.

Sales of existing homes were also down in August, dropping 4.3 percent to an annual rate of 5.5 million units, the slowest pace in five years.

Rates on five-year adjustable rate mortgages averaged 6.15 percent, down from 6.21 percent last week. One-year ARMs averaged 5.60 percent, down from 5.65 percent. It marked the fourth straight weekly decline for both adjustable-rate categories.