Fixed rates drop on housing news

by MPA20 Mar 2014
Fixed rates were down slightly this week, according to data released today by Freddie Mac.

“Mortgage rates eased this week as housing starts declined 0.2 percent in February to a seasonally adjusted annual rate of 907,000, below consensus forecast,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “The rate on the 10-year treasury note rose following the Fed's announcement Wednesday afternoon and, if this holds, interest rates may begin to trend higher going into next week.”

Average rates for 20-year fixed-rate mortgages were 4.32% this week, down from last week’s 4.37%. Last year at this time, the average rate for the 30-year FRM was 3.54%.

The average rate for the 15-year FRM dropped to 3.32% from last week’s average of 3.38%. A year ago, the 15-year FRM averaged 2.72%.

The 5-year Treasury-indexed hybrid adjustable rate mortgage averaged 3.02% this week, down from last week’s 3.09%. Last year at this time, the average rate for the 5-year ARM averaged 2.61%.

The 1-year ARM averaged 2.49% this week, up from last week’s average of 2.48%. A year ago, the 1-year ARM averaged 2.63%.
 

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