U.S. mortgage rate ends its downward trend: Freddie Mac

Source: Xinhua| 2019-03-08 11:49:31|Editor: Xiang Bo
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WASHINGTON, March 7 (Xinhua) -- Mortgage rate in the United States ended its downward pattern, signaling a positive spring home buying season, said the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, on Thursday.

For the week ending on March 7, 30-year fixed-rate mortgage (FRM) in the United States reached 4.41 percent, while the previous week's figure was 4.35 percent.

For the same period a year ago, the 30-year FRM averaged 4.46 percent, according to Freddie Mac.

"While mortgage rates very modestly rose to 4.41 percent this week, they remain below year-ago levels for the fourth week in a row," said Sam Khater, chief economist of Freddie Mac.

Besides, Freddie Mac noted that 15-year FRM this week edged up to 3.83 percent, which was also higher than previous week's reading of 3.77 percent. For the same period a year ago, the figure was 3.94 percent.

"In late 2018, mortgage rates rose over a full percentage point from the prior year, which was one of the main reasons that weakness in home sales continued into early 2019," Khater said. "However, the impact of recent lower rates and a strong labor market has led to a rise in purchase mortgage demand as we start the spring home buying season."

Freddie Mac is a corporation founded by U.S. Congress, aiming at promoting the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. It has been conducting weekly surveys on U.S. mortgage rate since April 1971.