Home / News / Government / Weak Jobs Report Sends Mortgage Rates Tumbling Again
Print This Post Print This Post

Weak Jobs Report Sends Mortgage Rates Tumbling Again

Freddie Mac's latest ""Primary Mortgage Market Survey"":http://www.freddiemac.com/pmms/ (PMMS) showed average fixed mortgage rates finding yet another record low.


The 30-year fixed averaged 3.56 percent (0.7 point) for the week ending July 12, down from 3.62 percent the previous week. At the same time in 2011, the 30-year fixed averaged 4.51 percent. This week marks the 16th straight week that the 30-year average has stayed below 4 percent.

The 15-year fixed also fell, averaging 2.86 percent (0.7 point), a drop from 2.89 percent last week. A year ago, the 15-year fixed averaged 3.65 percent.

The 5-year adjustable-rate mortgage (ARM) also fell, averaging 2.74 percent with a 0.6 point (down from 2.79 percent the week before). The 1-year ARM inched up a bit, going up to 2.69 percent (from 2.68 percent a week ago).

Frank Nothaft, VP and chief economist at Freddie Mac, attributed the falling rates to easing Treasury bond yields following June's disappointing jobs report.

""Following a lackluster employment report for June, long-term U.S. Treasury bond yields eased somewhat this week, allowing fixed mortgage rates to reach yet another record low,"" said Nothaft. ""Only 80,000 net new jobs were added to the economy last month, not enough to lower the unemployment rate from 8.2 percent. This was the concern of the Federal Reserve's monetary policy meeting held June 19-20. Minutes released from that meeting on July 11 revealed that a few members felt further monetary stimulus was needed to promote satisfactory growth in employment to meet the Committee's goal.""

""Bankrate's"":http://www.bankrate.com/ findings showed that the jumbo 30-year fixed fell to 4.44 percent, while the 15-year fixed drop to 3.05 percent-both record lows. The popular 5-year ARM also fell to a new record low of 2.95 percent.

""Between the European debt crisis and evidence of weaker economic growth both in the U.S. and around the globe, investors have had plenty to worry about,"" a release from Bankrate read. ""And when investors worry, they gravitate toward secure investments like U.S. government bonds, to which mortgage rates are pegged.""

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.

Check Also

Ranking the Nation’s Top Targets for Second Homes

A new report reveals that this New England area has become a targeted destination for investors and those seeking second homes. Read on to find out these growing markets, and what destinations to look out for in 2024.