U.S. mortgage rates rise second straight week-Freddie Mac

Interest rates on U.S. 30-year fixed-rate mortgages rose 0.05 percentage point in the latest week, its second consecutive weekly increase, a move that does not bode well for the hard-hit 30-year fixed-rate mortgages, according to a survey released on Thursday by home funding company Freddie Mac.

Interest rates on the 30-year fixed-rate mortgage averaged 5.25 percent, with an average 0.7 point, for the week ending July 30, up from the previous week's 5.20 percent.

The mortgage rate was also significantly higher than the record low of 4.78 percent set the week ending April 2.

Freddie Mac started the Primary Mortgage Market Survey in 1971.

"Bond yields rose slightly higher this week on market optimism that the economy may be stabilizing somewhat, and mortgage rates followed," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.