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The numbers: Mortgage rates drop as concerns rise over the stability of the banking system.
The 30-year fixed-rate mortgage averaged 6.42% as of March 23, according to data released by Freddie Mac on Thursday.
That’s down 18 basis points from the previous week. One basis point is equal to one hundredth of a percentage point.
Last week, the 30-year rate was at 6.6%. Last year, it was averaging 4.42%.
The average rate on the 15-year mortgage fell to 5.68%, from 5.9% the previous week. The 15-year rate was at 3.63% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country, which are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging 6.44% as of Thursday morning.
What Freddie Mac said: “Mortgage rates continued to slide down as financial market concerns came to the fore over the last two weeks,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“However, on the homebuyer front, the news is more positive with improved purchase demand and stabilizing home prices,” he added. “If mortgage rates continue to slide over the next few weeks, look for a continued rebound during the first weeks of the spring homebuying season.”
Market reaction: The yield on the 10-year Treasury note
TMUBMUSD10Y,
was trading below 3.5% during the afternoon trading session on Thursday.
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