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Mortgage Rate Breach 3% For First Time Since July

Mortgage rates, or interest rates on home loans, reached 3% for the first time since last July, as economy improves slowly, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 3.02 percent for the week ending March 4, 2020, up from 2.97 percent last week. A year ago at this time, the average rate was 3.29 percent.

The 15-year FRM this week averaged 2.34 percent, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.79 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 2.73 percent, down from 2.99 percent last week. It was 3.18 percent a year ago.

"Since reaching a low point in January, mortgage rates have risen by more than 30 basis points, and the impact on purchase demand has been noticeable," said Sam Khater, Freddie Mac's Chief Economist.

"While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March, prior to the pandemic. However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season."

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