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Mortgage Rates Mixed to End February

Mortgage interest rate readings came out mixed this week amid a pile of recent and upcoming economic reports.

Freddie Mac’s Primary Mortgage Market Survey, released Thursday, has fixed-rate mortgage (FRM) products rising over the week ending February 27, with the 30-year fixed coming up to 4.37 percent (0.7 point) from 4.33 percent previously. A year ago, the 30-year FRM averaged 3.51 percent.

The 15-year FRM this week shifted up similarly, landing at 3.39 percent (0.7 point) from 3.35 percent.

“Mortgage rates edged up with new home sales exceeding expectations and rising to a seasonally adjusted pace of 468,000 units in January, the strongest annual rate since July 2008,” said Frank Nothaft, chief economist and VP for Freddie Mac. “The S&P/Case-Shiller 20-city composite house price index rose 13.4 percent over the 12 months ending in December 2013.”

Adjustable rates in Freddie’s survey were down, meanwhile. According to the company, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.05 percent (0.5 point) this week, down from 3.08 percent, while the 1-year ARM averaged 2.52 percent (0.4 point) from 2.57 percent.

At the same time, finance site Bankrate.com reported opposite movements in its own national survey: The 30-year fixed average moved down very slightly to 4.48 percent, while the 15-year fixed was down to 3.52 percent, the site reported.

At the same time, the 5/1 ARM shifted up slightly to 3.30 percent.

“Mortgage rates have been in a docile state over the past few weeks, as uncertainty regarding global markets has receded,” Bankrate said in its report. “While the pace of the U.S. economic recovery is still an open question, things have transitioned to a wait-and-see mode that translates into tame movements in mortgage rates.

“The surge of monthly economic releases over the next ten days may answer some of these economic questions, and be a catalyst for renewed volatility in the bond market, and ultimately, mortgage rates.”

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