Freddie Mac said Wednesday the average rate for 30-year fixed loans rose to 4.40 percent from 4.39 percent last week. Two weeks ago, the rate hit 4.17 percent, the lowest level on records dating back to 1971. The 15-year loan also increased, to 3.77 percent from 3.76 percent. It hit its lowest point since the survey began in 1991 two weeks earlier at 3.57 percent.

The yields pulled away from their yearly lows in the last two weeks as strong data eased economic fears and traders dumped bonds they bought ahead of the Federal Reserve's massive Treasury-buying program to boost the economy. Yields have fallen in recent days on worries over Ireland's debt crisis and tensions between North and South Korea.

The low rates did little to spur home sales, though, because would-be homebuyers are too concerned about their jobs or can't qualify for a mortgage. Others can't sell their home before buying another. In a hopeful sign, the Mortgage Bankers Association said Wednesday that applications for mortgages to buy homes rose to the highest level since May last week from the previous week. But new home sales dropped 8.1 percent to a seasonally adjusted annual rate of 283,000 units in October, the Commerce Department said Wednesday. The pace is just 2.9 percent lower than August's rate of 275,000 units, the worst level on records dating back to 1963.

The National Association of Realtors said Tuesday that sales of previously owned homes slipped 2.2 percent last month to a seasonally adjusted annual rate of 4.43 million units. The performance was weaker than had been expected.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day. Rates on five-year adjustable-rate mortgages averaged 3.45 percent, up from 3.40 percent. The five-year hit 3.25 percent two weeks ago, the lowest rate on records dating back to January 2005.

***taken from http://www.msnbc.msn.com/id/38770102/ns/business-us_business/