Freddie Mac reports a drop in the 30-year fixed mortgage rate to 5.04% during the week ended February 19 from 5.16% the prior week, while the 15-year fixed rate fell to 4.68% from 4.81%. Meanwhile, interest on five-year hybrid adjustable-rate loans dropped to 5.04% from 5.23%; and the one-year ARM slipped to 4.80% from 4.94%. Freddie Mac chief economist Frank Nothaft attributes the declines to reports indicating further weakness in the economy.
After taking such a beating in January, the Nashville market appears to be picking up as home loan rates continue to fall. 22 percent more homes that closed in February than in the previous month and price were up 2.4 percent.
