30-Year Fixed-Rate Back Below 4%

The 30-year fixed-rate mortgage moved below 4 percent this week as economic indicators point to housing weakness and a lag in the economy recovery, according to Freddie Mac’s Primary Mortgage Market Survey. “The S&P/Case Shiller 20-City Composite home price index slid in January to its lowest reading since December 2002,” said Frank Nothaft, VP and chief economist for Freddie Mac.

Last week, the 30-year fixed-rate averaged 4.08 percent, above 4 percent for the first time since October 2011. This week ending March 29, the 30-year averaged 3.99 percent (0.7 point).. The 30-year is still below last year’s average at this time, when it was 4.86 percent.