HOME SALES -- AND MORTGAGE RATES -- ARE ON THE RISE

The interest rates on home mortgages are the highest they have been in more than two years, according to figures released Thursday, but that hasn't dampened the enthusiasm of new-home buyers. The Federal Home Loan Mortgage Corporation announced Thursday that the interest rate on the average 30-year fixed loan across the country is now 8.82 percent -- up nearly two percentage points from a year ago. Yet figures released separately by the Commerce Department show that sales of new houses rose nearly 10 percent last month. That's the biggest hike in nearly a year, even though the average new-home price is up to $134,000. How could home sales remain strong even though loan rates are rising? One reason is that home buyers are increasingly choosing adjustable-rate loans, which have doubled in volume since this time last year. The introductory teaser rate on new ARMs is still below 6 percent nationwide on average, and individual banks in many areas are offering terms as low as 4 percent to 5