Mortgage Rates Down Slightly this Week

March 22, 2014

Mortgage rates

Average mortgage interest rates eased slightly this week, but may begin to move higher again next week, Freddie Mac said Thursday.

The average rate on a 30-year, fixed-rate mortgage was 4.32 percent this week, compared with 4.37 percent last week and 3.54 percent a year ago, the agency said in its weekly survey.

On a 15-year, fixed-rate mortgage, the average interest rate of 3.32 percent was down from 3.38 percent last week. A year ago, the average rate on that loan product was 2.72 percent.

Frank Nothaft, Freddie Mac’s chief economist, attributed the slight declines to the government’s report on housing starts, which showed a slight decline in February. However, rates may reverse course.

On Wedneday, the Federal Reserve began signaling that short-term interest rates could begin moving sooner than many investors expected.

“The rate on the 10-year Treasury note rose following the Fed’s announcement Wednesday afternoon and if this holds, interest rates may begin to trend higher going into next week,” Nothaft said in a statement.

This post originally appeared on on March 20, 2014.

About The Author

Read All Stories By Chicago Tribune