There's good news today for would-be home buyers: Mortgage rates are at their lowest point so far this year, according to a report from Freddie Mac. Nationwide, 30-year fixed-rate mortgages were at 6.14 percent this week, down from 6.18 percent last week and 6.37 percent a year ago.
Frank Nothaft, the mortgage giant's chief economist, said last week's stock-market dive was partly responsible for the falling loan rates.
"Mortgage rates slid further in the past week to the lowest level this year, as volatility in overseas stock markets led to questions about implications for the U.S. economy," he said in a statement.
"Uncertainties about the strength of the economy dominated the effects of other indicators, such as January's personal income growth and core inflation rate measured through the personal consumption report. Both increased at rates faster than had been expected, and potentially would have put upward pressure on interest rates. But the flight to quality due to the stock market's fall pushed bond yields down instead," he said.
Rates on other popular loans:
15-year fixed-rate mortgages: 5.86 percent, down from 5.92 percent last week and 6 percent a year ago.
One-year adjustable-rate mortgages: 5.47 percent, down from 5.49 percent last week, but up from 5.45 percent a year ago.
Five-year hybrid ARMS: 5.9 percent, down from 5.93 percent last week and 6.03
Edited by Rogerdodger, 08 March 2007 - 10:04 PM.
