CALIFORNIA : BRIEFLY / THE ECONOMY : Rates on Fixed Mortgages Edge Higher

The average interest rate on 30-year fixed-rate mortgages rose slightly to 7.83% this week from 7.80% last week, according to Freddie Mac. Fifteen-year mortgages, a popular option for refinancing, averaged 7.45% this week, up from 7.43% the week before. On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 6.18% this week, down from 6.22% the previous week. The rates do not include add-on fees known as points, which averaged about 1% of the loan amount for all three types of mortgages. Separately, the Mortgage Bankers Assn. said mortgage loan applications for the week ended Aug. 27 increased 4.5% from the previous week but were down 25.7% from the same week last year.