Mortgage Rates Sit Tight, Remain Flat

Mortgage rates were flat last week as investors tried to keep fears of a U.S. recession on the backburner — for now, at least. 30-year fixed-rate mortgages averages 5.67 percent for the week ended February 7, Freddie Mac said today, down 1 basis point from a reported 5.68 percent in the week prior. Last year at this time, traditional fixed-rate mortgages averaged 6.28 percent. 5-year ARMs averaged 5.21 percent, according to the GSE, down from 5.32 percent last week. “Long-term mortgage rates were little changed this week, largely in sync with the movements in the Treasury bond yields during the same time,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Additionally, economic news released in the past week showed that the economy continues to be weak.” Nothaft cited The Federal Reserve’s Senior Loan Officer Opinion Survey for January as one point illustrating economic uncertainty. “70 percent of those surveyed expect deterioration in credit quality for prime residential mortgages in the coming year,” he noted. For more information, visit http://www.freddiemac.com.