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Mortgage Rates Rise

November 21, 2001

WASHINGTON (AP) _ Mortgage rates around the country rose this week after 30-year mortgage rates recently dropped to their lowest level in 30 years of record keeping.

The average interest rate on 30-year fixed-rate mortgages climbed to 6.75 percent from 6.51 percent last week, according to a nationwide survey released Thursday by Freddie Mac, the mortgage company.

Two weeks ago, 30-year mortgage rates fell to 6.45 percent, the lowest level since Freddie Mac began conducting its nationwide survey in 1971.

Even with the uptick, this week’s rate of 6.75 percent marked the 15th week in a row that 30-year mortgages have been under 7 percent.

Fifteen-year mortgages, a popular option for refinancing, rose to 6.24 percent this week. That compared with 5.98 percent the previous week.

A year ago, rates for 30-year mortgages averaged 7.73 percent and rates for 15-year mortgages averaged 7.41 percent.

On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 5.18 percent, up from 5.06 percent from the previous week. Last year at this time, ARMs stood at 7.28 percent.

These rates do not include add-on fees known as points, which averaged around 1 percent of the loan amount for all three types of mortgages.

Mortgage rates rose in response to some recent economic indicators in November suggesting that the recession may be shallow, said Freddie Mac’s chief economist Robert Van Order. ``With mortgage rates rising this week, the industry may well see a rush to lock in or refinance at current mortgage rates.″

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