Mortgage rates rise, shy of record low

5/11/2009

Rates on 30-year mortgages inched up this week after matching an all-time record low a week earlier.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages rose to 4.84 percent this week, down from an average of 4.78 percent last week. Rates, have been below 5 percent for eight consecutive weeks.

The all-time low of 4.78 percent was first recorded on the week of April 2 and again last week. Freddie Mac’s survey dates back to 1971

Low rates have sparked a surge in refinancing activity, with about 75 percent of new home loan applications coming from borrowers seeking to refinance.

Frank Nothaft, Freddie Mac’s chief economist, said in a statement that the slight rise came amid news that “the economy may be approaching the bottom of the recession.”

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