U.S. Mortgage Rates at New Lows, Following a Weak Jobs Report

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According to Freddie Mac's (OTC: FMCC) latest Primary Mortgage Market Survey (PMMS), the weaker than expected job growth in May pushed down both fixed and adjustable-rate mortgages to new lows for the year.

The 30-year fixed averaged 4.49 percent and the 15-year averaged 3.68 percent, its lowest since November, 2010.

Frank Nothaft, vice president and chief economist of Freddie Mac said, "Long-term Treasury yields moved lower following a weak jobs report and mortgage rates followed suit. 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."

Report Highlights:

The 30-year fixed-rate mortgage (FRM) 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 FRM 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.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) 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. 

Nothaft further commented, "The housing market continues to be fragile across the nation as well. 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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