Mortgage rates hit year low

NEW YORK (CNNMoney.com) -- Mortgage rates eased last week, hitting their lowest level this year, hurt by concerns about the U.S. economy and the recent shake-up in overseas stock markets, Freddie Mac reported Thursday.

The average rate on 30-year fixed-rate loans fell to 6.14 percent for the week ending March 8, from 6.18 percent the week before.

That marks the lowest level of 2007. Last year at this time, 30-year mortgage rates averaged 6.37 percent.

"Mortgage rates slid further in the past week ... as volatility in overseas stock markets led to questions about implications for the U.S. economy," Frank Nothaft, Freddie Mac chief economist, said in prepared remarks.

"We do not foresee significant movements in mortgage rates, with rates on 30-year fixed-rate mortgages averaging between 6.3 and 6.4 percent for the remainder of the year."

Freddie Mac said the 15-year rate slipped to an average of 5.86 percent from 5.92 percent the previous week. A year ago, the 15-year rate averaged 6 percent.

Five-year adjustable-rate mortgages fell to 5.90 percent from 5.93 percent last week. The five-year ARM averaged 6.03 percent a year ago.

The average one-year adjustable-rate mortgage eased to 5.47 percent, down from 5.49 percent. At this time last year, the loan averaged 5.45 percent.

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