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Mortgage rates hold steady
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March 16, 2000: 2:03 p.m. ET
Market stabilizes as investors remain optimistic about overall economy
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NEW YORK (CNNfn) - Mortgage rates held firm after four weeks of sliding on the heels of a buoyant economy, according to a survey released by Freddie Mac Thursday.
The average rate on a 30-year fixed-rate mortgage was 8.24 percent for the week ending March 17, almost changed from 8.23 percent a week earlier.
Last year, the same mortgage stood at 7.01 percent.
The average for a 15-year fixed-rate mortgage inched up marginally to 7.83 percent from 7.81 percent last week. Twelve months ago the rate averaged 6.64 percent.
A one-year adjustable rate mortgage averaged 6.68 percent, unchanged for the second consecutive week.
"After literally months of inflation uncertainty, mortgage rates now seem to have stabilized. Investors are optimistic about the economy and are more confident of the Fed's determination to keep inflation at bay," Freddie Mac chief economist Robert Van Order said.
[Click here to see a breakdown of U.S. mortgage rates by region.]
Van Order said inflation numbers, although strong, should have little effect on interest rates.
"The Consumer Price Index will be released tomorrow and the Fed will meet Tuesday, so this could be an interesting week for the financial sectors, including the mortgage market," he added.
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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