U.S. 30-year mortgage rates rose in week - Zillow

NEW YORK Aug 24 (Reuters) - Interest rates on 30-year fixed-rate mortgages edged marginally higher in the latest week, real estate website Zillow.com said on Tuesday.

Mortgage rates, however, remain historically low.

Low rates on mortgages should boost home loan refinancing and put 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 on 30-year fixed mortgages, the most widely used loan, were 4.29 percent on Tuesday afternoon, up from 4.28 percent at the same time last week, according to Zillow Mortgage Marketplace.

The previous week's rate matched the one reported on Aug. 3 which was the lowest rate reported since Zillow Mortgage Marketplace launched in April 2008.

The 30-year fixed mortgage rate fell to 4.25 percent last Thursday then rose steadily for the remainder of the week, reaching its peak early Tuesday morning at 4.34 percent before a sharp fall to the current rate, Zillow said.

Interest rates on other types of mortgages were mixed.

Fifteen-year fixed mortgage rates were 3.85 percent, down from 3.86 percent the prior week. Rates for 5/1 adjustable-rate mortgages, or ARMs, set at a fixed rate for five years and adjustable each following year, were 3.26 percent, up from 3.23 percent the prior week.

Zillow's rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers through the website. They are not marketing rates, or a weekly survey.

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

Mortgage rates appear poised to move still lower.

Treasuries rallied on Tuesday as weak economic data caused investors to stampede into safe-haven long-dated U.S. debt. (Editing by James Dalgleish)