Mortgage rates fall for 8th consecutive week
This East Hampton Village house is on the market for $550,000. Credit: The Corcoran Group
Mortgage rates fell for the eighth consecutive week after the federal government reported weaker than expected job growth in May.
Thirty-year, fixed-rate home loans averaged 4.49 percent this week with an average 0.7 point, down from 4.55 percent a week ago. A year ago, 30-year, fixed-rate mortgages averaged 4.72 percent and fell as low as 4.17 percent in early November, according to the weekly survey by mortgage giant Freddie Mac.
The rates on 15-year, fixed-rate residential mortgages averaged 3.68 percent with an average 0.7 point, down from 3.74 percent a week ago. A year ago, 15-year, fixed home loans averaged 4.17 percent and fell as low as 3.57 percent in early November.
The rates this week posted another low for the year.
Rates on one- and five-year adjustable loans also fell.
"Long-term Treasury yields moved lower following a weak jobs report and mortgage rates followed suit," Freddie Mac chief economist Frank Nothaft said. "The economy added 54,000 jobs in May, the fewest in eight months, and factories cut payrolls for the first time in seven months."
The unemployment rate rose to 9.1 percent in May, the highest since December.
In addition, the housing market remains fragile across the country.
"In its latest regional economic review released June 8," Nothaft said, "the Federal Reserve Baord indicated that residential sales and home prices showed continued weakness in most Districts."
For more information on rates: http://www.freddiemac.com/pmms/
