Mortgage Rates Reverse Course
After a brief uptick, fixed mortgage rates reversed course this week and dropped slightly, Freddie Mac reported March 21 in its weekly Primary Mortgage Market Survey.
The 30-year fixed-rate fell 0.09 percent since last week to 3.54 percent (down from 4.08 percent a year ago). The 15-year fixed-rate decreased 0.07 percentage points to 2.72 percent (down from 3.30 percent a year ago).
The one-year adjustable-rate mortgage dropped 0.01 percentage points to 2.63 percent (down from 2.84 percent a year ago). However, the five-year Treasury-indexed remained steady at 2.61 percent (down from 2.96 percent a year ago).
“Low and stable inflation is placing downward pressure on fixed mortgage rates,” Frank Nothaft, Freddie Mac vice president and chief economist, said in a news release. “Annual growth in the consumer price index has remained at or below 2 percent for the past four months, and for the producer price index even lower. This, in part, is why the Federal Reserve monetary policy committee on March 20 lowered the upper end of its inflation forecast for 2013. In addition, our March Outlook calls for 30-year fixed mortgage rates to remain below 4 percent throughout this year.”
View Freddie Mac’s weekly Primary Mortgage Market Survey.