The mixed economy’s ups and downs over the past few weeks is having the same effect on mortgage interest rates, sending them on a mild roller coaster ride.
A day before Freddie Mac’s Feb. 28 Primary Mortgage Market Survey, HSH.com’s vice president Keith Gumbinger nailed it when his firm’s Feb. 27 Mortgage Rate Radar report showed a slight uptick in the average rate for conforming 30-year fixed-rate mortgages.
“Despite the small rise in this week’s survey and another equity rally on Tuesday, mortgage interest rates should break their upward trend over the past six weeks and ease a bit as the week progresses,” Gumbinger said.
The next day, that’s exactly what happened.
The average rate on the 30-year fixed-rate mortgage (FRM) reversed course and came in at 3.51 percent, with an average 0.8 point, the week ending Feb. 28, according to Freddie Mac’s weekly Primary Mortgage Market Survey.
Last week, the rate averaged 3.56 percent, and a year ago, it averaged 3.90 percent.
More falling rates
For the 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM), the average interest rate was 2.61 percent, with an average 0.6 point, down from 2.64 last week, and down from the average 2.83 percent a year ago.
Finally, for the week ending Feb. 28, Freddie Mac reported the 1-year Treasury-indexed ARM averaged 2.64 percent, with an average 0.4 point, down from 2.65 percent last week, and down from 2.72 percent a year ago.