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Mortgage rates inch higher
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December 13, 2001: 1:57 p.m. ET
U.S. 30-year mortgage rates on the rise, but housing sector remains strong.
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NEW YORK (CNN/Money) - With U.S. mortgage rates on the rise, homebuyers rushed to take advantage of the historical low rates, and some economists said the housing sector may help bolster a sagging economy.
According to Freddie Mac, the 30-year long-term mortgage averaged 7.09 percent in the week ending Dec. 14, with an average 0.8 point, up from 6.84 percent last week. A year ago, the 30-year fixed-rate stood at 7.42 percent.
The 15-year fixed-rate mortgage this week averaged 6.57 percent, with an average 0.8 point, up from last week's 6.30 percent. The same mortgage stood at 7.11 percent during the year-ago week.
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At the same time, the one-year adjustable-rate mortgages (ARMs) indexed to the Treasury averaged 5.19 percent this week, with an average 0.8 point. That rate is almost unchanged from last week's average of 5.21 percent. One-year ARMs averaged 7.05 percent last year.
"Although long-term rates bumped up this week, they are still at historically low levels, which help keep housing more affordable for the first-time homebuyers," said Robert Van Order, chief economist at Freddie Mac. "This should ensure that the housing sector remains vibrant going into the new year."
He added that even though the timing of the economic recovery may be uncertain, strong housing sector will continue to be an important contributor to a possible turnaround next year.
Click here for 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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