Mortgage rates rise this past weekINTEREST RATE ACTIVITY

A slight rise across the board in mortgage rates. The benchmark 30-year fixed-rate mortgage rose 3 basis points to 6.25 percent this week, according to the Bankrate.com national survey of large lenders.

The mortgages in this week’s survey had an average total of 0.27 discount and origination points. One year ago, the mortgage index was 6.51 percent; four weeks ago, it was 6.19 percent.

The 15-year fixed-rate mortgage crept up 5 basis points, to 5.97 percent. The 5/1 adjustable-rate mortgage saw the biggest gain with a jump of 7 basis points to 6.12 percent.

This is the third week in a row that the 30-year fixed has risen. It’ll take a while to know whether it’s the start of a trend or just more minor jostling within this somewhat range-bound scenario my colleague Holden Lewis has mentioned previously in this space.

One thing is for certain, there’s little chance of not mentioning this week the subprime debacle. While politicians in state legislatures and in Washington, D.C., point fingers and try to figure a way to fix it, others are hoping any bailout schemes don’t soak taxpayers.

Help for distressed homeowners Ohio has been hit hard by foreclosures in the housing meltdown. The state’s foreclosure rate led the nation last year with 3.38 percent of all loans and more than 11 percent of subprime loans going under. It’s a problem that’s been haunting Ohio for a number of years, and officials have decided it’s time to intervene and help some people hold onto their homes.

This week Ohio began its “Opportunity Loan Refinance Program.” Homeowners at risk of not being able to manage high monthly mortgage payments due to an adjustable-rate mortgage resetting, or hardship such as divorce or unemployment, can apply for a 30-year, 6.75 percent fixed-rate loan.

A 20-year, fixed-rate second mortgage is also available to help pay closing costs, fees and the like.

The program is geared toward moderate- and low-income residents. There are income limits that vary by county but generally don’t exceed an annual income of $80,000, and applicants must live in the home.

At least four hours of one-on-one HUD-approved counseling is required.

It won’t solve the overall problem by a long shot. Initially, the Ohio Housing Finance Agency, or OFHA, will issue $100 million in taxable municipal bonds. The state is assuming some 1,000 families will be helped, since the average loan is expected to be about $100,000.