US 30-year mortgage rates rise in latest week

WASHINGTON, May 1 (Reuters) - U.S. 30-year mortgage rates rose slightly in the week ended May 1, home funding company Freddie Mac (FRE.N: Quote, Profile, Research) said on Thursday.

Thirty-year mortgage rates inched up to an average of 6.06 percent from 6.03 percent last week. Fifteen-year mortgages eased to an average of 5.59 percent from 5.62 percent the prior week, Freddie Mac said.

One-year adjustable rate mortgages, or ARMs, were unchanged at an average of 5.29 percent.

Freddie Mac said the "5/1" ARM, set at a fixed rate for five years and adjustable each following year, averaged 5.73 percent, up from 5.68 percent a week earlier.

A year ago, 30-year mortgage rates averaged 6.16 percent, 15-year mortgages 5.87 percent and the one-year ARM 5.42 percent. The 5/1 ARM averaged 5.87 percent.

"This week saw little change in mortgage rates on mixed news of higher inflation and a weaker housing market," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.

The Federal Reserve lowered the bellwether federal funds rate by a quarter percentage point, to 2 percent, on Wednesday.

Lenders charged an average of 0.5 percent in fees and points on 30- and 15-year mortgages, both up from 0.3 percent last week.

They also charged 0.5 percent on the 5/1 ARM, unchanged from a week earlier.