Mortgage rates rose this week but still remained below 5 percent, Freddie Mac said Thursday.

The average rate on 30-year, fixed-rate mortgages was 4.81 percent, up from a record-low 4.71 percent last week. The increase broke a five-week streak of declining loan rates.

Last year at this time, the average fixed rate for 30-year mortgages was 5.47 percent.

The average rate on a 15-year fixed mortgage rose to 4.32 percent from a record low of 4.27 percent.

Rates on five-year, adjustable-rate mortgages averaged 4.26 percent, up from last week's 4.19 percent. Rates on one-year, adjustable-rate mortgages fell to 4.24 percent from 4.25 percent.

Borrowers can reduce their rates by buying points, which cost 1 percent of the loan amount. The nationwide averages in Freddie Mac's survey were 0.7 points for 30-year and one-year loans, 0.6 points for 15-year loans, and 0.5 points for five-year mortgages.

"I would expect mortgage rates to bounce around for a while but not head significantly higher," said Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Fla. "As you look out into 2010, if the economy improves, one would expect mortgage rates to creep higher over time."

The Federal Reserve has kept rates around 5 percent this year by buying $1.25 trillion in mortgage-backed securities.

Low rates are leading more homeowners to act. Mortgage applications to buy a home rose 4 percent last week, while refinance applications jumped 11 percent from the previous week, the Mortgage Bankers Association said.

Foreclosure filings in the United States will probably reach a record for the second consecutive year, with 3.9 million notices sent to homeowners in default, RealtyTrac said Thursday.

-- From News Services