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Mortgages ease back down
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February 24, 2000: 2:03 p.m. ET
Inflation under control; Fed injects confidence in financial markets
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NEW YORK (CNNfn) - Mortgage rates slipped down this week, stemming a two-week gradual rise according to a survey released today by Freddie Mac.
The average rate on a 30-year fixed-rate mortgage averaged 8.31 percent for the week, down from 8.38 percent a week earlier. Last year the same mortgage stood at 6.89 percent.
The average for a 15-year fixed-rate mortgage also decreased to 7.92 percent, from 8 percent last week. Twelve months ago, that kind of mortgage averaged 6.51 percent.
"...Federal Reserve chairman Alan Greenspan over the last few weeks has reassured the financial market of its role in the economy," said Robert Van Order, chief economist for Freddie Mac. "This seems to have calmed the market and we saw mortgage rates follow the 10-year Treasury downward."
[Click here to see a breakdown of U.S. mortgage rates by region.]
A one-year adjustable-rate mortgage averaged 6.73 percent, according to
Freddie Mac's survey, which covers the week through Feb. 25. Last week they stood at 6.77 percent. Last year, a 1-year adjustable-rate mortgage averaged 5.71 percent.
Freddie Mac (FRE: Research, Estimates), or the Federal Home Mortgage
Corp., is a publicly traded company that the government set up in 1970 to provide a flow of funds to mortgage lenders.
It buys mortgages from banks, bundles them, and then sells them as mortgage-backed securities. Its products and the products of other similar agencies have become increasingly popular as an alternative to government-backed bonds, particularly with international investors. 
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