Mortgage rates move higher
Positive GDP, consumer spending, purchasing reports push averages up.
March 7, 2002: 12:49 p.m. ET
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NEW YORK (CNN/Money) - U.S. 30-year fixed-rate mortgages made slight gains last week on reports of economic strength, a survey showed Thursday.
According to Freddie Mac, the 30-year long-term mortgage averaged 6.87 percent for the week ending March 8, with an average 0.7 point payable up front to the lender. The rate was up from last week's 6.80 percent. The mortgage averaged 6.97 percent at this time last year.
The 15-year fixed-rate mortgage averaged 6.37 percent this week, with an average 0.7 point, also higher than last week's average 6.28 percent. The rate averaged 6.52 percent during the same week a year ago.
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At the same time, one-year adjustable-rate mortgages (ARMs) indexed to the Treasury averaged 5.07 percent this week, with an average 0.7 point, up from last week's average 4.94 percent. One-year ARMs averaged 6.29 percent at this time last year.
"Mortgage interest rates edged up over the end of last week and into this week, as early economic indicators suggest the economy is expanding and will cause the Federal Reserve Board to raise rates later this year," said Frank Nothaft, Freddie Mac chief economist.
Nothaft added that positive economic news last week on the fourth-quarter gross domestic product, consumer income and spending, and purchasing reports pushed rates higher.
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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