Low inflation keeping interest rates low

New York /
Apr.April 21, 2011 03:22 PM

Mortgage interest rates fell across the board this past week and remained below year-ago levels, according to data from U.S.-backed mortgage giant Freddie Mac for the seven days that ended today. The 30-year fixed-rate mortgage averaged 4.80 percent with 0.7 points during the week, down from 4.91 percent in the week prior and 5.07 percent in the same week last year. Meanwhile, the 15-year fixed-rate mortgage saw its interest rate fall to 4.13 percent with 0.7 points, down from 4.13 percent a week ago and 4.39 percent in 2010. Treasury-indexed hybrid adjustable-rate mortgages were also down week-over-week, with the 5-year version averaging 3.61 percent and the 1-year version averaging 3.16 percent, down from 3.78 percent and 3.25 percent, respectively, during the week prior. Frank Nothaft, vice president and chief economist at Freddie Mac, attributed the declines to minimal inflation. “Low inflation is keeping mortgage rates at bay,” Nothaft said. “The core consumer price index rose just 0.1 percent in March, below the market consensus forecast. The 12-month growth rate in core prices was 1.2 percent, which is also rather low by historical standards.” TRD


Related Articles

arrow_forward_ios
How tough is Freddie when it comes to protecting landlords and tenants?

How tough is Freddie when it comes to protecting landlords and tenants?

How tough is Freddie when it comes to protecting landlords and tenants?
The rates for a 30-year fixed-rate mortgage dropped 7 percentage points for the week ending September 10, reaching 2.86 percent. (iStock)

Mortgage rates notch new low

Mortgage rates notch new low
FHFA Director Mark Calabria and PIMCO CEO Emmanuel Roman (Getty, iStock)

PIMCO warns of danger in Fannie, Freddie privatization

PIMCO warns of danger in Fannie, Freddie privatization
Wells Fargo CEO Charles Scharf (Scharf by Win McNamee/Getty Images; Unsplash)

Borrowers sue Wells Fargo over forbearance policy

Borrowers sue Wells Fargo over forbearance policy
FHFA director Mark Calabria (Getty; iStock)

Fannie and Freddie extend eviction, foreclosure moratorium

Fannie and Freddie extend eviction, foreclosure moratorium
Here are the multifamily borrowers getting the most forbearance from Fannie & Freddie

Here are the multifamily borrowers getting the most forbearance from Fannie & Freddie

Here are the multifamily borrowers getting the most forbearance from Fannie & Freddie
(iStock)

Mortgage rates are sub-3%. How will buyers and lenders react?

Mortgage rates are sub-3%. How will buyers and lenders react?
The 30-year fixed-rate mortgage averaged 3.07 percent for the week ending July 2 (iStock)

Mortgage rates hit all-time low

Mortgage rates hit all-time low
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...