Weaker than expected job growth in May continues to push both fixed and adjustable-rate mortgages to new lows for the year, according to reports by Freddie Mac. The 30-year fixed averaged 4.49 percent and the 15-year averaged 3.68 percent, its lowest since November, 2010.
“Long-term Treasury yields moved lower following a weak jobs report and mortgage rates followed suit,” according to Frank Nothaft, Vice President and Chief Economist for Freddie Mac. “The economy added 54,000 jobs in May, the fewest in eight months, and factories cut payrolls for the first time in seven months. As a result, the unemployment rate rose to 9.1 percent, representing the highest rate since December.
30-year fixed-rate mortgage averaged 4.49 percent with an average 0.7 point for the week ending June 9, 2011, down from last week when it averaged 4.55 percent. Last year at this time, the 30-year FRM averaged 4.72 percent.
15-year fixed-rate mortgage this week averaged 3.68 percent with an average 0.7 point, down from last week when it averaged 3.74 percent. A year ago at this time, the 15-year FRM averaged 4.17 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.28 percent this week, with an average 0.5 point, down from last week when it averaged 3.41 percent. A year ago, the 5-year ARM averaged 3.92 percent.
1-year Treasury-indexed ARM averaged 2.95 percent this week with an average 0.5 point, down from last week when it averaged 3.13 percent. At this time last year, the 1-year ARM averaged 3.91 percent.
“The housing market continues to be fragile across the nation as well,” Nothaft continues. “In its latest regional economic review released June 8th, the Federal Reserve Board indicated that residential sales and home prices showed continued weakness in most Districts.”
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