US 30-yr mortgage rates rise in latest wk-Zillow

NEW YORK, July 27 (Reuters) - Interest rates on 30-year fixed-rate mortgages edged higher in the latest week but remained historically low, according to real estate website Zillow.com on Tuesday.

Low interest rates on mortgages may lift home loan refinancing activity and puts more cash into consumers' hands to funnel into the economy. They also make homes more affordable as the housing market copes with the absence of government support.

Mortgage rates for 30-year fixed mortgages, the most widely used loan, were 4.38 percent Tuesday afternoon, up from 4.37 percent compared to the same time last week, according to Zillow Mortgage Marketplace.

The previous week's rate was the lowest rate recorded since Zillow Mortgage Marketplace launched in April 2008. The 30-year fixed mortgage rate hit 4.35 percent late last week then peaked at 4.42 percent on Saturday, Zillow said.

Interest rates on other types of mortgages were mixed.

Fifteen-year fixed mortgage rates were 3.87 percent, down from 3.89 percent the week prior. Rates for 5/1 adjustable-rate mortgages, or ARMs, set at a fixed rate for five years and adjustable each following year, were 3.37 percent, unchanged from the week prior.

Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers through the site, and reflect the most recent changes in the market. They are not marketing rates, or a weekly survey.

While low rates and high affordability helped the housing market to gain ground over the past year, it has struggled since the April 30 expiration of popular homebuyer tax credits.

To take advantage of the tax credits, buyers had to sign purchase contracts by April 30. Contracts originally had to close by June 30, but that was extended another three months

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities. Yields move inversely to price.

Treasuries have seen demand drop recently as a deluge of supply and stronger stocks soured global investors on safe-haven U.S debt.