Mortgage rates end five-week descent

NEW YORK (CNNMoney.com) -- Mortgage rates ended their five-week descent following the Fed's decision to cut its federal funds rate by half of a percentage point, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 5.68% for the week ending Thursday, up from 5.48% last week, but still well below its historical average Freddie Mac noted.

At this time last year, the 30-year fixed-rate mortgage averaged 6.34%, Freddie Mac said.

"Reinforcing the Fed's resolution to thwart a recession, the Federal Open Market Committee announced another cut in the target federal funds rate by half of a percentage point in their most recent scheduled meeting," said Freddie Mac (FRE, Fortune 500) vice president and chief economist Frank Nothaft in statement Thursday.

"This came on the heels of the Fed's rate cut of three-quarters of a percentage point the previous week, and the shaping-up of a fiscal stimulus package by Congress and the White House. This cut was in line with market expectations." he added.

Freddie Mac said 15-year fixed-rate loans averaged 5.17%, up from 4.95% last week. A year ago, the 15-year rate averaged 6.06%.

Rates on five-year adjustable-rate mortgages (ARMs) averaged 5.32%, up from 5.13% last week. The 5-year rate averaged 6.04% at this time last year.

One-year Treasury-indexed ARMs averaged 5.05%, up from 4.99% last week. At this time a year ago, the 1-year ARM averaged 5.54%.