Proving true numerous analysts who noted that the Fed's decision last week to cut the federal funds target rate would be unlikely to drive mortgage rates lower, Freddie Mac's weekly rate survey found that rates on 30-year fixed mortgages rose for the second straight week. 30-year fixed-rate mortgages averaged 6.42 percent this week,the GSE reported, up from 6.34 percent last week. 15 year mortgage rates averaged 6.09 percent with an average 0.5 point, up from last week when it averaged 5.98 percent. Adjustable rate mortgages, however, fell for the fourth straight week. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.15 percent this week, with an average 0.5 point, down from last week when it averaged 6.21 percent. One-year Treasury-indexed ARMs averaged 5.60 percent this week with an average 0.6 point, down from last week when it averaged 5.65 percent. "Consistent with the direction of 10-year Treasury securities, average rates on 30-year fixed-rate mortgages drifted up in the past week to levels close to those at the beginning of the month," said Frank Nothaft, Freddie Mac vice president and chief economist. "Also tracking short-term Treasury notes, average rates on 1-year adjustable-rate mortgages (ARMs) dropped by 5-hundredth of a percent. Though it is the fourth consecutive week rates on ARMs have declined, the share of mortgage applications for ARMs has been trending down, and last week reached its lowest level since March 2003, according to the Mortgage Bankers Association." For more information, visit http://www.freddiemac.com.