Mortgage rates drop after downbeat housing reports

Mortgage rates declined over the past week following disappointing readings on the US housing market, according to Freddie Mac’s weekly survey of mortgage rates.

Freddie Mac Chief Economist Frank Nothaft pointed to a surprise decline in February new-home sales as among the data points disappointing market watchers. Expectations for the housing market have increased in recent weeks as it has shown signs of emerging from a downturn that has dragged on for years.

For the week ended Thursday, the 30-year fixed-rate mortgage averaged 3.99 percent compared with 4.08 percent the previous week and 4.86 percent a year earlier. Rates on 15-year fixed-rate mortgages averaged 3.23 percent versus 3.3 percent a week earlier and 4.09 percent a year earlier.

Five-year Treasury-indexed hybrid adjustable-rate mortgages, or ARMs, averaged 2.9 percent compared with 2.96 percent the prior week and 3.7 percent a year earlier. One-year Treasury-indexed ARM rates averaged 2.78 percent versus 2.84 percent last week and 3.26 percent a year earlier.

To read more, go to The Wall Street Journal