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Mortgage rates edge up
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May 3, 2001: 1:32 p.m. ET
Long-term rates creep slightly higher on news of sluggish economic growth
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NEW YORK (CNNfn) - Long-term mortgage rates moved slightly higher in the latest week, responding to economic reports highlighting continued sluggishness in the U.S. economy.
According to Freddie Mac, the benchmark 30-year fixed-rate mortgage (FRM) averaged 7.14 percent for the week ending May 4, gaining from last week's average of 7.12 percent. A year ago, the same mortgage averaged 8.28 percent.
The average this week for a 15-year fixed-rate mortgage was 6.66 percent, up slightly from the previous week's average of 6.63 percent. A year ago, the same rate stood at 7.94 percent.
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One-year adjustable-rate mortgages (ARMs) averaged 6.00 percent, up from last week's average of 5.97 percent. The same mortgage averaged 6.90 percent at this time last year.
"This week, interest rates reversed direction over news of continued slowing in the manufacturing industry and further job layoffs," said Robert Van Order, chief economist for Freddie Mac.
Van Order said the change from last week was minimal, "remaining in a narrow and relatively stable range that continues to spur growth in the housing industry."
[Click here to see a breakdown of U.S. mortgage rates by region]
Freddie Mac (FRE: Research, Estimates), or Federal Home Mortgage Corp., is a publicly traded company the government established in 1970 to provide a flow of funds to mortgage lenders.
It buys mortgages from banks, bundles them and then resells them as mortgage-backed securities. Its products, and the products of other, similar entities, have become increasingly popular as an alternative to government-backed bonds, particularly with international investors. 
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