Mortgage rates increase; 30-year averages 5.29%

McLEAN, Va. -- Rates on 30-year mortgages rose this week, remaining above 5% after reaching a record low earlier this year, Freddie Mac said Thursday.

The average rate on a 30-year fixed-rate mortgage was 5.29% this week, up from 5.22% last week, Freddie Mac said. Last year at this time, the 30-year fixed-rate mortgage averaged 6.52%.

Rates on 30-year mortgages dropped to a record low of 4.78% earlier this year, but have been above 5% since June.

Though the troubled U.S. housing market is beginning to stabilize, higher rates could slow down any recovery, because prospective buyers would be able to borrow less money and might decide to hold off on their purchases.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

The average rate on a 15-year fixed-rate mortgage was 4.68%, an increase from 4.63% last week, Freddie Mac said.

Rates on five-year, adjustable-rate mortgages averaged 4.75%, up from 4.73%. Rates on one-year, adjustable-rate mortgages dropped to 4.72% from 4.78%.

The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point for 30-year and 15-year fixed-rate mortgages, 0.6 point for five-year adjustable-rate mortgages, and 0.4 point for one-year adjustable-rate mortgages.