Mortgage Rate Down

Last week the mortgage rate was pushed up when financial markets were trying to hedge against the potential build up in inflation. However, several market indicators this week seemed to point to less of a threat of inflation, and that allowed rates to drift a little lower just like it was doing throughout February.

According to Freddie Mac's weekly report, the benchmark 30-year fixed rate mortgage average fell in this week ending Thursday to 6.34% from 6.37%. Last year at this time, the 30-year FRM averaged 5.95%. The 15-year loan also fell, to 5.37% from 6%. A year ago, the 15-year FRM averaged 5.47%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.93% this week, with an average 0.7 point, down from last week when it averaged 6.03%. A year ago, the 5-year ARM averaged 5.31 percent. The 1-year Treasury-indexed ARMs averaged 5.37% this week, with an average 0.8 point, down from last week when it averaged 5.45%. At this time last year, the one-year ARM averaged 4.20%.