Mortgage rates dropped last week
Although mortgage rates rose recently in response to a generally positive outlook on the economy, last week saw rates fall with news of Europe’s economy continuing to crumble and reports of uninspiring March employment numbers.
HSH.com’s mortgage tracker showed the overall rate for 30-year fixed-rate mortgages dropping to an average of 4.30 percent, while 15-year rates dropped to average 3.54 percent.
Fluctuating recovery means fluctuating rates
The economy continues to recover — but with less momentum than has been seen recently.
The Federal Reserve’s most recent meeting indicated a positive assessment of the economy, making it seem unlikely that the Fed will take new measures to expand or institute economic relief programs. The labor market, a key element to economic recovery, slowed considerably from its strong showing in the past three months — new job activity in March was half of the new job activity reported in February.
Spring is likely to see mortgage rates continue to be buffeted about, with no drastic increases or drops, as economic indicators — the state of the economy in Europe, the Fed’s stance on relief programs and the labor market — impact the market and consumer confidence.