Mortgage Rates Fell This Week, Freddie Mac Says

By Matt Grossman

Mortgage rates followed government-bond yields lower in the latest week, according to housing-finance agency Freddie Mac.

In the week ending Thursday, the average rate on a 30-year fixed-rate mortgage decreased to 3.76% from 3.89% last week. A year ago this week, the average rate was 3.02%.

Average 15-year rates were 3.01%, down from 3.14% a week ago, but up from 2.34% a year ago.

The average rate on a five-year Treasury-indexed hybrid adjustable-rate mortgage, or ARM, was 2.91%, down from 2.98% last week. A year ago, the 5-year ARM averaged 2.73%

The Russian invasion of Ukraine has led to geopolitical tensions and lower yields on U.S. Treasurys, which help set borrowing costs across the economy.

"While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty," Freddie Mac Chief Economist Sam Khater said. "Consequently, rates are expected to stay low in the short term but will likely increase in the coming months."

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

March 03, 2022 10:14 ET (15:14 GMT)

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