U.S. Mortgage Rates Reverse Direction

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U.S. mortgage rates changed their course this week after rising for three consecutive weeks, according to Freddie Mac. 

The 30-year fixed-rate mortgage averaged 4.28 percent this week, dropping from 4.37 percent last week. At this time a year ago, the average was 3.52 percent. 

"Mortgage rates were down this week as real GDP was revised downwards to 2.4 percent growth in the fourth quarter of 2013," Frank Nothaft, vice president and chief economist, Freddie Mac, said in the report. "Fixed residential investment negatively contributed to GDP decreasing 8.7 percent in the fourth quarter. The private sector added an estimated 139,000 jobs in February, which was below the market consensus and followed a downward revision of 48,000 jobs in January, according to the ADP Research Institute."

The 15-year fixed-rate mortgage averaged 3.32 percent, down from 3.39 percent a week ago. Last year at this time is was 2.76 percent. 

The one-year treasury-indexed ARM averaged 2.52 percent this week, unchanged from last week. 

Rising mortgage rates have been cited as deterrents for the housing market recovery, with mortgage applications falling for three weeks in a row. 

However, yesterday the Mortgage Bankers Association reported a 9.4 percent increase in mortgage applications, citing higher refinance and purchase indices.