Mortgage rates fell to the lowest level in almost two months, tracking a drop in Treasury yields as Japan's deepening nuclear crisis spurred demand for relatively safe investments.
The average rate for 30-year fixed loans declined to 4.76 percent this week from 4.88 percent last week, according to Freddie Mac. The average 15-year rate was 3.97 percent, down from 4.15 percent.
The average rate on adjustable-rate mortgages that are fixed for the first five years was 3.57 percent this week, down from 3.73 percent last week. Rates on one-year ARMs averaged 3.17 percent, down from 3.21 percent.
Yields on 10-year Treasury notes, which are benchmarks for some consumer loans, fell this week to the lowest level since December, and stocks sank, reflecting investors' concern about the situation in Japan.
"There's been a little flight to - I don't want to say safety - quality," said Keith Gumbinger, vice president of HSH Associates, a publisher of consumer loan data in Pompton Plains, N.J. "As long as trouble remains in the forefront, interest rates are likely to be lower than they otherwise would be."
Mortgage applications fell 0.7 percent in the week ended March 11, according to the Mortgage Bankers Association. The association's measure of purchase applications declined 4 percent; refinancings climbed 0.9 percent.
Housing starts plunged to a 22-month low in February, and permits for construction fell to a record low, the Commerce Department said. Homebuilders are competing with foreclosures and falling prices for existing homes.
Mortgage rates began climbing from a record low of 4.17 percent in the week ended Nov. 11 and reached a 10-month high of 5.05 percent in February.
- From news services
4.88
Last week
4.76
This week
Caption ‘Buckwild’ stars LOS ANGELES, Calif. -- Shain Gandee’s co-stars on MTV’s “Buckwild” were shocked and heartbroken to learn of their friend’s sudden and tragic death.Many of them took to Twitter to express their grief over the loss of the 21-year-old who was found dead in a car on Monday in Sissonville, West Virginia.Joey, who knew Shain since they were toddlers, wrote, “Everyone is gonna wear camo the first day back to school to support Shain Gandee… Sad sad day in West Virginia for everyone.”PHOTOS: Stars We Lost In 2013Katie Tweeted, “Everything doesn’t happen for a reason I don’t know why people say that… Thanks everyone for your condolences. We appreciate it.”Tyler, who has been posting nonstop since the news broke, wrote, “RIP Shain Gandee. I love you brother… God is with us always. Even though our buddy passed, he’s in a better place. God is taking care of Shain now… Still feels unreal to me.”WATCH: Shain Gandee & Shae Bradley Discuss Starring On MTV’s Buckwild Bluefoot (a.k.a Michael) Tweeted, “I love you Shain idk what I’m gonna do w.o. ya bro… Rest high on that mountain Shain I love you brother and miss you terribly already all I can think about is growin up thaxton holler together”Anna simply wrote, “My heart is broken.”Shae Tweeted that she was just trying to get through the day, writing, “Breathe in. Breathe out. Repeat. Just going through the motions. Please pray for Shains close friends and family.”Cara wrote, “This is the emptiest I’ve ever felt.”PHOTOS: Sudden Endings: Stars Who Died Too SoonMTV also released a statement about the death of Shain. “We are shocked and saddened by the terrible news about Shain Gandee, and those involved in this tragic incident. We are waiting for more information but at this time, our main concern is for the Gandee family and their friends. Our thoughts and prayers are with them. Shain had a magnetic personality, with a passion for life that touched everyone he met and we will miss him dearly,” a rep for the network said in a statement earlier on Monday.-- Jesse Spero
