After rising for three straight weeks to levels not seen since November, a slew of weak economic news finally drove mortgage rates lower, mortgage financier Freddie Mac said today.
“Weak economic reports that indicated declines in the job market, slowing in manufacturing and low consumer confidence drove bond yields lower this week and mortgage rates followed,” Freddie Mac vice president and chief economist Frank Nothaft said in a statement.
“Meanwhile, the housing market continues to take a toll on the rest of the economy,” added Nothaft.
“Residential fixed investment shaved 1.25 percentage points off economic growth in the fourth quarter of 2007. More recently, the median sales price of new homes fell 15.1 percent in January, representing the largest annual drop on record. Residential construction fell 19.7 percent over the twelve-months ending January 2008, the largest decline since March 2007.”
“Interest rates for 30-year fixed-rate mortgages are now at the same levels as they were two weeks ago, erasing last week’s upward jump.”
The traditional 30-year fixed-rate mortgage fell to 6.03 percent for the week ending March 6, down from 6.24 percent last week.
The 15-year dipped to 5.47 percent, a quarter-point lower than its average rate of 5.72 percent last week.
Rates also improved on adjustable-rate mortgages, with the average 5-year ARM falling to 5.34 percent this week, down from 5.43 percent, while the one-year Treasury ARM fell to 4.94 percent from 5.11 percent.
A year ago, the 30-year averaged 6.14 percent, the 15-year 5.86 percent, the 5-year 5.90 percent, and the one-year 5.47 percent.
See more data in Freddie Mac’s Weekly Primary Mortgage Market Survey archives.
(photo: imuttoo)
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