Fixed Rate Mortgages Fall Below 6%

Washington, DC, March 20, 2008—Fixed rate mortgages fell this week, while adjustable-rate mortgages didn’t move, according to Freddie Mac's weekly survey.

The 30-year fixed-rate mortgage averaged 5.87 percent for the week ending March 20, down from 6.13 percent the week before. It averaged 6.16 percent a year ago.

The 15-year fixed-rate averaged 5.27 percent, down from 5.60 percent. It averaged 5.90 percent a year ago.

However, five-year hybrid adjustable-rate mortgages averaged 5.56 percent, down from 5.58 percent last week. It averaged 5.91 percent a year ago.

"Mortgage rates fell this week as various actions were taken to improve market liquidity," said Frank Nothaft, Freddie Mac chief economist, in a press release.

"Slowing consumer spending and weak employment conditions are among the concerns behind the Fed's decision to lower the target federal funds rate by 0.75 percentage points in the most recent Federal Open Market Committee meeting," Nothaft said.