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Mortgages skew downward
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March 9, 2000: 2:07 p.m. ET
Effects of a strong economy and low inflation lead to market stabilization
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NEW YORK (CNNfn) - Mortgage rates continued downward on the heels of a vibrant economy, according to a survey released by Freddie Mac Thursday.
The average rate on a 30-year fixed-rate mortgage was 8.23 percent for the week ending March 10, down from 8.27 percent a week earlier. Last year, the same mortgage stood at 7.11 percent.
The average for a 15-year fixed-rate mortgage slipped to 7.81 percent from 7.84 percent last week. Twelve months ago the rate averaged 6.75 percent.
A one-year adjustable rate mortgage averaged 6.68 percent, unchanged from a week earlier.
"The economy continues to show strength, inflation remains tame, and the market is confident the Fed is serious about keeping inflation in check, " said Robert Van Order, chief economist for Freddie Mac. "All of this has led to the stabilization we see in today's vibrant mortgage market."
[Click here to see a breakdown of U.S. mortgage rates by region.]
Van Order said even though the housing sector is slowing from last year's record highs, the market are still strong enough to push 2000 to the second or third best year in sales.
Freddie Mac (FRE: Research, Estimates), or Federal Home Mortgage Corp., is a publicly traded company 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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