Mortgage rates decline at the end of February

2/26/2014 2:58:06 PM

According to a recent report by Mortgage News Daily, interest rates for a 30-year fixed-rate mortgage fell in the last week of February. During the previous week, mortgage rates averaged 4.5 percent before dropping to an average of 4.375 percent to close the month.

Recent housing data reports revealed slower existing-home sales and lower prices at the end of 2013. These reports influenced mortgage rates to slide noticeably. For many borrowers and those looking to make a new home purchase, the decline is a sign of relief, as mortgage rates are expected to rise above 5 percent in 2014.

While Mortgage News Daily reported that rates declined, the current rate for a 30-year fixed-rate mortgage on the Zillow Mortgage Marketplace was at an average of 4.18 percent during the same time period, MarketWatch reported. While it is clear that rates are lower than previous highs seen in 2014, the direction of where rates will go in the coming months is unclear.

"Rates were steady last week as uncertain economic data left markets with a fuzzy picture of the health of the economy," Erin Lantz, director of mortgages at Zillow, told MarketWatch. "This week, we expect the uncertainty to continue, leaving rates fairly flat."

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