Mortgage rates fall after Fed swoops in

After last week's mini-spike, mortgage rates settle after the Fed takes action to stabilize the market.

30-year fixed-rate mortgage averages 3.50% for the week ending March 26, vs. 3.65% a week earlier and 4.06% at this time a year ago, according to the Freddie Mac Primary Mortgage Market Survey.

“Similar to other segments of the economy, real estate demand is softening. However, the combination of the Fed’s actions and pending economic stimulus will provide substantial support to the mortgage markets,” said Freddie Mac Chief Economist Sam Khater.

15-year FRM averages 2.92% vs. 3.06% in the previous week and 3.57% a year ago.