Volatility of markets blamed as mortgage rates edge higher

Mortgage rates around the country edged up last week as investors tried to decipher mixed economic reports and other information about where the economy is heading.

The average interest rate on 30-year fixed-rate mortgages moved up to 6.03 percent for the week ending Nov. 22, after dropping to a new low the week before, Freddie Mac reported Thursday in its nationwide survey.

Last week's rate of 5.94 percent was the lowest since the mortgage giant began tracking 30-year mortgage rates in 1971. It also had marked the seventh time this year that rates on this benchmark mortgage hit a new low.

Rates for 15-year fixed-rate mortgages, a popular option for refinancing, also rose last week, climbing to 5.44 percent. Last week's rate on 15-year mortgages fell to 5.32 percent, the lowest level since Freddie Mac began tracking these rates in 1991.

"Mortgage rates moved upward a little in response to the current volatility in the financial markets," said Frank Nothaft, Freddie Mac's chief economist. "Economic reports are mixed, and this will keep mortgage rates bouncing up and down somewhat, probably for the rest of this year."

Stoked by low mortgage rates, home sales are expected to post records this year.