Mortgage rates move higher

March 6, 2009

THE ECONOMY

Mortgage rates move higher

The average rate on a 30-year fixed-rate mortgage increased to 5.15% this week from 5.07% last week, mortgage company Freddie Mac said.

The average rate on a 15-year fixed-rate mortgage rose to 4.72% from 4.68%. Five-year adjustable-rate mortgages increased to 5.08% from 5.06%. One-year ARMs rose to 4.86% from 4.81%.

The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 of a point for 30-year and 15-year fixed-rate mortgages. The fee for five-year adjustable-rate mortgages averaged 0.6 of a point. One-year adjustable-rate mortgages had an average fee of half a point.

BANKRUPTCY

Circuit City says sales to end soon

Circuit City Stores Inc. will finish its end-of-business sales by Sunday, earlier than the bankrupt electronics retailer had projected.

"We expect all the stores to run out of inventory by the end of the weekend," said Scott Carpenter, executive vice president of Great American Group, one of four companies liquidating the electronics chain.

The companies originally said the sales would continue until March 31.

INFANT PRODUCTS

Six firms end use of bisphenol-A

Connecticut's attorney general announced that six companies had stopped manufacturing baby bottles containing bisphenol-A, a chemical that some studies say may be harmful to infants.

Attorneys general from Connecticut, Delaware and New Jersey sent letters in October to 11 companies asking them to end their use of the chemical.

Avent America Inc., Disney First Years, Gerber, Dr. Brown's, Playtex Products Inc. and Evenflo Co. are voluntarily complying with the request, Connecticut Atty. Gen. Richard Blumenthal said.

TELEVISION

Digital converter coupons funded

The agency that mails out coupons for digital TV converter boxes has received fresh funding from the economic stimulus program.

It expects to eliminate its coupon waiting list in 2 1/2 weeks. The fund that pays for the $40 coupons reached its spending limit in early January. The National Telecommunications and Information Administration was still able to mail out coupons, but only as old ones expired. It has a waiting list of 2.3 million households.

EUROPE

2 central banks cut interest rates

Europe's two leading central banks cut interest rates to record lows to boost their recession-mired economies.

The cuts of half a percentage point by the European Central Bank and the Bank of England took rates down to 1.5% and 0.5%, respectively, as both banks try to stimulate growth amid lower consumer spending, rising unemployment and falling exports from the world economic crisis.

REAL ESTATE

MGM, Deutsche talks said to fail

MGM Mirage and Dubai World failed to reach agreement with Deutsche Bank and talks on a $1.2-billion loan to complete the Las Vegas CityCenter project collapsed, according to five people with knowledge of the matter.

Deutsche Bank was seeking equity and debt stakes in the $11.2-billion development on the Las Vegas Strip in return for the loan. MGM Mirage and Dubai World are now holding talks with other parties, one of the people said.

-- times wire reports