Mortgage rates dip because of global tensions

Mortgage rates' upward trajectory was halted by developments in Ukraine.

According to the latest data, released Thursday by Freddie Mac, the 30-year fixed-rate average fell to 3.89% with an average 0.8 point. (A point is a fee paid to a lender equal to 1% of the loan amount. It is in addition to the interest rate.) It was 3.92% a week ago and 2.97% a year ago.

Freddie Mac, the federally chartered mortgage investor, aggregates rates from about 80 lenders across the country to come up with weekly national averages. The survey is based on home purchase mortgages. Rates for refinances may be different. It uses rates for high-quality borrowers with strong credit scores and large down payments. Because of the criteria, these rates are not available to every borrower.

The 15-year fixed-rate average slipped to 3.14% with an average 0.7 point. It was 3.15% a week ago and 2.34% a year ago. The five-year adjustable-rate average was unchanged at 2.98% with an average 0.3 point. It was 2.99% a year ago.

"Mortgage rates were fairly flat last week," said Paul Thomas, vice president of capital markets at Zillow. "There were no signs of changes in labor markets, as employment figures remain strong. Retail sales were stronger than expected and import prices pointed to continued inflationary pressures. But the strong economic data from last week was offset by continued uncertainty in Ukraine, keeping rates from continuing to increase. Markets will be focused on the situation in Ukraine this week and potential economic impacts, along with inflation data coming out Friday."

Although Russia's attack on Ukraine came too late in the week to be factored into Freddie Mac's survey, events leading up to it had already caused a reaction in the financial markets. Stocks plunged, with the S&P 500 entering correction territory. Energy prices...