Mortgage Rates

Mortgage rates fell for the third consecutive week. According to Freddie Mac, the average rate for a 30-year fixed rate mortgage fell by two basis points to 3.41 percent as compared to last week's 3.43 percent and 3.90 percent year-over-year. The average rate for a 15-year fixed rate mortgage was 2.64 percent as compared to last week's 2.65 percent and 3.13 percent year-over-year. Falling mortgage rates were attributed to reduced consumer spending. Last week's economic news includes the NAHB Wells Fargo Housing Market Index (HMI), with a reading of 42 for March. This is four points below investor expectations and…

Mortgage rates saw little change last week amidst mixed economic news. Treasury auctions held on Tuesday, Wednesday and Thursday saw weak demand; this could have been caused by the FOMC minutes that were released on Wednesday. The minutes indicated that some FOMC members supported ending the current quantitative easing (QE) program within a few months. The Fed is currently purchasing $85 billion monthly in bonds and Mortgage Backed Securities. If the QE program is ended, demands for bonds and MBS will decline, which usually raises mortgage rates. Employment Numbers Show Promise For Housing Market Thursday's jobless claims offered some positive…