Last week’s Freddie Mac Primary Mortgage Market Survey® showed 30-year fixed-rate mortgage interest rates averaging 5.05 percent with an average 0.7 point given at closing to obtain that rate during the week ending February 25, 2010. This report showed the rate up from the prior week when it averaged 4.93 percent. By Friday, however, the reports from local Flagstaff lenders were that mortgage interest rates were “softening.”
Here are the Freddie Mac survey results:
Mortgage rates generally move higher as the economy improves. Last week’s economic news was mixed. News in the housing market was hard to read. The February Case-Schiller housing index report had some good news and some bad. The National Association of Realtors® January existing home sales report showed sales down from December, but up from January 2009. The stock market was up overall for the month of February.
“Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5 percent this week amid a mixed set of economic data reports” said Frank Nothaft, Freddie Mac vice president and chief economist. “For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board.”
There is another factor at work on home loan rates. That’s the fact that the Federal Reserve has been supporting low rates for almost a year by buying mortgage-backed securities. The Fed’s commitment to do that expires March 31. The Fed has extended its commitment before, but if it does not, we’ll see rates rise.
To buy or sell any Flagstaff home, contact me: Ann Heitland at RE/MAX Peak Properties.
To search the Flagstaff MLS, click here!
Click here to see my featured Flagstaff home listings. | 
-->
Email to a Friend
