|
Mortgages remain stable
|
 |
March 23, 2000: 2:39 p.m. ET
One-year rates showing effect of rate hike, but inflation kept in check
|
NEW YORK (CNNfn) - Mortgage rates continued to stand their ground for the second consecutive week, 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 24, a negligible change from 8.24 percent a week earlier.
A year ago, the same mortgage stood at 6.98 percent.
The average for a 15-year fixed-rate mortgage crept up 7.84 percent from 7.83 percent last week. Twelve months ago the same rate averaged 6.61 percent.
A one-year adjustable rate mortgage (ARM) averaged 6.78 percent up from 6.68 percent the previous week.
Freddie Mac chief economist Robert Van Order said the financial markets both expected and welcomed the Fed's decision to raise short-term interest rates.
"The effect of the Fed's rate hike on overnight rates is already starting to filter into the one-year ARM and subsequent Fed hikes could make that product less attractive to potential home buyers in the future," Van Order said.
[Click here to see a breakdown of U.S. mortgage rates by region.]
"It must be said, though, that currently we are experiencing the best of both worlds. The economy is in the longest economic expansion in history, with incomes consistently on the rise and inflation remaining under control," Van Order 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. 
|
|
|
|
|
 |
|
