Mortgage Rates Slip After Weeks of Flatness
Mortgage rates finally broke their holding pattern this week, pulling back as reports demonstrated the housing market's ongoing strength and the global economy's precariousness.
According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.51 percent (0.8 point) for the week ending February 28, dropping from 3.56 percent previously. Last year at this time, the 30-year FRM averaged 3.90 percent.
The 15-year fixed average also dropped, though more modestly- the average rate fell to 2.76 percent
(0.8 point) from 2.77 percent last week.
Mortgage rates eased somewhat as the consumer price index in February held steady for the second month in a row. House price indicators, however, showed gains in 2012. The S&P/Case-Shiller national home price index rose 7.3 percent last year, reflecting the largest four-quarter growth since the third quarter of 2006. This, in part, was a driving force that pushed up the number of existing and new home sales in February to the highest levels since July 2007 and July 2008, respectively.
In a release, Freddie Mac noted that low rates should continue to help drive the housing recovery as the market heads into the spring home buying season.
Hopefully we will continue to see the growth in the housing industry and keep the consumer confidence up as we continue through 2013 and what it has in store for us.