Mortgage rates jump

NEW YORK (CNNMoney.com) -- Mortgage rates rose for the third consecutive week in a row, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.42 percent for the week ended Sept. 27, up from 6.34 percent last week.

Video

More video

Business 2.0 takes a look at 10 real estate markets that are near rock bottom and ready to bounce back. Play video

Last year at this time, 30-year mortgage rates averaged 6.31 percent.

"Consistent with the direction of 10-year Treasury securities, average rates on 30-year fixed-rate mortgages drifted up in the past week to levels close to those at the beginning of the month," said Frank Nothaft, Freddie Mac's (Charts, Fortune 500) chief economist, in a statement.

"Also tracking short-term Treasury notes, average rates on 1-year adjustable-rate mortgages [ARMs]dropped by 5-hundredth of a percent. Though it is the fourth consecutive week rates on ARMs have declined, the share of mortgage applications for ARMs has been trending down, and last week reached its lowest level since March 2003, according to the Mortgage Bankers Association."

"Additionally, existing home sales continued to decline in August to the slowest pace in 5 years to a seasonally adjusted 5.5 million units. Sales of single-family homes slowed in every census region, with the highest impact felt in the Western region," he added.

In its latest report, Freddie Mac said rates on 15-year fixed-rate loans averaged 6.09 percent in the latest week, up from 5.98 percent last week. A year ago, the 15-year rate averaged 5.98 percent.

Five-year adjustable-rate mortgages (ARMs) averaged 6.15 percent this week, down from 6.21 percent last week.

A year ago, the 5-year ARM averaged 6.00 percent.

One-year ARMs averaged 5.60 percent this week, down from 5.65 percent last week. They were at 5.47 percent this time last year.