Freddie Mac: Housing data helps drop mortgage rates

By Palm Beach Business.com

DELRAY BEACH — Weaker data on the housing market pushed mortgage rates southward once again, according to separate reports from Freddie Mac and Bankrate released Thursday.

The 30-year, fixed-rate mortgage fell back to an average of 3.99 percent 0.7 point from 4.08 a week ago. That was the first time this year that the rate for the 30-year popped over the 4.00 percent market, according to Freddie Mac’s Primary Mortgage Market Survey. A year ago, the rate sat at 4.86 percent.

Bankrate, meanwhile, pegged the 30-year at an average of 4.23 percent with 0.39 point, down from 4.29 percent a week ago. Bankrate noted that the 30-year has been below 6 percent since 2008. 

"Mortgage rates slid this week amid weaker housing economic indicators,” Freddie Mac Chief Economist Frank Nothaft said. “The S&P/Case Shiller 20-City Composite home price index slid in January to its lowest reading since December 2002. In addition, new home sales declined 0.5 percent in February, below the market consensus of an increase, and pending existing home sales also declined for the month."

Bankrate also cited renewed concerns about the effect of higher gasoline prices on the economy and slower growth in China as contributing to this week's rate retreat.

The 15-year fixed-rate mortgage also dropped, to 3.23 percent with 0.8 point, according to Freddie Mac, and to 3.44 percent with 0.36 point from 3.48 percent, according to Bankrate.