30-year mortgage rates rise sharply

WASHINGTON, D.C. (AP) - Rates on 30-year mortgages spiked last week as the tumult in financial markets continued to be felt in housing finance.

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.46 percent last week, up from 6.04 percent the previous week. The sharp increase pushed 30-year rates to the highest level since the week of Oct. 16.

Rates on 30-year mortgages hit a high for the year of 6.63 percent in late July and then dropped to a seven-month low of 5.78 percent the week of Sept. 18.

Analysts attributed the increase to the impact the financial crisis is having on bond...