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Mortgage rates held steady this week as markets were caught between positive housing news and mildly disappointing economic developments.
[IMAGE]""Freddie Mac's"":http://www.freddiemac.com/ Primary Mortgage Market Survey indicated little to no movement in fixed rates for the week ending March 7. According to Freddie Mac's readings, the 30-year fixed-rate mortgage (FRM) averaged 3.52 percent (0.7 point) this week, up slightly from the previous 3.51 percent average. Last year at this time, the 30-year FRM averaged 3.88 percent.
The 15-year FRM was unchanged from last week, averaging 2.76 percent (0.7 point).
Adjustable rates were similarly sluggish. The 5-year hybrid adjustable-rate mortgage (ARM) averaged 2.63 percent (0.5 point) this week, up from 2.61 percent previously.
[COLUMN_BREAK]The 1-year ARM average was 2.63 percent (0.3 point), down a single basis point.
""With gross domestic product growing only 0.1 percent in the fourth quarter of 2012, inflation remains at bay and consequently mortgage rates low,"" said Frank Nothaft, VP and chief economist at Freddie Mac. ""Moreover, these low mortgage rates are helping to revive the housing market. For instance the CoreLogic home price index rose 9.7 percent between January 2012 and 2013, marking the largest annual increase since 2006.""
Meanwhile, ""Bankrate.com"":http://www.bankrate.com/ reported no movement in any of its three major metrics. The 30-year fixed averaged 3.73 percent, the 15-year fixed averaged 2.96 percent, and the 5/1 ARM averaged 2.68 percent, all the same as last week.
""The movement in mortgage rates was rather tame this week as the monthly look at the labor market looms,"" Bankrate said in a release. All-in-all, the economic recovery is plugging along, with the Dow Jones Industrial Average hitting a new high, but it all boils down to jobs. Those that are working are seeing stagnant wages, so the best hope for a jump in consumer spending and a boost to the overall economy lies in adding more jobs.
Nearly half of analysts surveyed by Bankrate last week had projected a decline in rates this week. ""For next week"":http://www.bankrate.com/news/rate-trends/mortgage.aspx, 58 percent forecast no change, 25 percent forecast an increase, and the remaining 17 percent predict a decline.
