Mortgage rates drop amid mixed economic conditions

Low interest rates may make it easier for homeowners to remain current on their mortgage loans.

The latest report from Freddie Mac showed that rates for fixed and adjustable mortgages decreased during the week of March 11. The average rate for 30-year fixed mortgages decreased from 4.97 to 4.95 percent. For 15-year fixed mortgages, the average interest rate dropped slightly from 4.33 to 4.32 percent. The average rate for one-year adjustable mortgages was 4.22 percent, down from the previous week’s 4.27 percent.

The announcement follows mixed economic reports during the previous week, according to Freddie Mac vice president and chief economist Frank Nothaft.

"Pending existing home sales fell 7.6 percent in January, well below the market consensus of a 1 percent gain," he said. "Meanwhile, the economy lost only 36,000 jobs in February, fewer than market forecasts, and the unemployment rate held steady at 9.7 percent."

Nothaft also pointed to a revision in the unemployment report adding 35,000 jobs to December and January’s combined data. Bureau of Labor Statistics data show that manufacturing, an industry hit hard by the recession, has also remained stable in the new year, while construction continues to suffer losses.

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