Mortgage rates fell this week after weak economic data forced the Fed to lower the fed funds rate and boost liquidity, mortgage financier Freddie Mac said today in a release.
The benchmark 30-year fixed-rate mortgage averaged 5.87 percent for the week ending March 20, down from 6.13 percent last week, while the 15-year averaged 5.27 percent, down from 5.60 percent a week earlier.
“Mortgage rates fell this week as various actions were taken to improve market liquidity,” said Frank Nothaft, Freddie Mac chief economist.
“In addition, the inflation report from the Consumer Price Index reflected weaker price increases than consensus expectations. Unchanged in February both including and excluding food and energy costs, it is the first time the core CPI did not report a monthly increase since November 2006.”
“Slowing consumer spending and weak employment conditions are among the concerns behind the Fed’s decision to lower the target federal funds rate by 0.75 percentage points in the most recent Federal Open Market Committee meeting,” Nothaft said.
Adjustable-rate mortgages were mixed, with the five-year showing modest improvement and the one-year rising from week-ago levels.
The average five-year Treasury ARM dipped to 5.56 percent this week from 5.58 percent last week, while the one-year ARM actually climbed slightly to 5.15 percent from 5.14 percent one week earlier.
A year ago, the 30-year averaged 6.16 percent, the 15-year 5.90 percent, the five-year 5.91 percent, and the one-year 5.40 percent.
See more data in Freddie Mac’s Weekly Primary Mortgage Market Survey archives.
(photo: psd)
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