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Mortgage rates ease
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April 27, 2000: 2:30 p.m. ET
But robust economy, brisk inflation could lead Fed to increase short-term rates
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NEW YORK (CNNfn) - Long-term mortgage rates inched down last week, according to a survey released Thursday by Freddie Mac.
The average rate on a 30-year fixed-rate mortgage was 8.13 percent for the week ending April 28, down from 8.16 percent a week earlier.
A year ago, the same mortgage stood at 6.93 percent.
The average for a 15-year fixed-rate mortgage was 7.79 percent, edging down from 7.82 percent the previous week. Twelve months ago the same loan averaged 6.55 percent.
A one-year adjustable rate mortgage (ARM) averaged 6.77 percent, a negligible change from 6.76 percent a week earlier.
The same mortgage averaged 5.63 percent a year ago.
 "Existing home sales were up a little in March as mortgage rates eased from February's higher level," said Frank Nothaft, deputy chief economist for Freddie Mac.
[Click here to see a breakdown of U.S. mortgage rates by region.]
"However, today's Gross Domestic Product (GDP) figures show a robust growth rate of 5.4 percent in the first quarter of 2000 amid signs that inflation appears to be picking up," Nothaft added. "This means there is little doubt the Fed will increase short-term rates at its next FOMC meeting, which is bound to lead to higher mortgage rates in the near term and directly impact the housing economy."
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 resells 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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