NEW YORK (CNN/Money) - Mortgage rates turned higher in the latest week, despite continuing signs of a stalled economic recovery, as the war in Iraq showed signs of resolution after U.S.-led forces took control of Baghdad, Freddie Mac said Thursday.

The 30-year mortgage rate climbed to an average of 5.85 percent for the week ending April 11, with 0.6 of a point payable up front to the lender. That's up from 5.79 percent last week, according to Freddie Mac.

Last year at this time, the long-term mortgage rate stood at 6.99 percent.

The 15-year fixed-rate mortgage also rose, averaging 5.17 percent, with 0.6 of a point payable up front, up from 5.06 percent last week. The 15-year rate averaged 6.49 percent one year ago.

Despite the rise in longer-term rates, one-year adjustable-rate mortgages (ARMs), loosely indexed to the 10-year Treasury note, fell for the third consecutive week. The ARM averaged 3.80 percent, with 0.6 point payable up front, down from 3.82 percent a week ago. The one-year average stood at 5.00 percent in the same week last year.

"With the conflict in Iraq seemingly under control, the financial markets have shifted focus back onto the economy," said Frank Nothaft, Freddie Mac chief economist. "Freddie Mac's most recent economic forecast recognizes that the first half of the year may be slower than originally thought, but that the second half will begin to pick up."

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Freddie Mac's average mortgage rates are based on a survey of 125 lenders nationwide. The rates include those on mortgages accepted by borrowers with good credit ratings who place a 20 percent down payment on their homes, according to Freddie Mac. The total amount of each mortgage considered for the survey doesn't exceed a $300,700 limit.

Freddie Mac (FRE: down $0.45 to $54.89, Research, Estimates), or Federal Home Loan 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.