Mortgage Rates Move Lower Following Weak Jobs Report

Weaker than expected job growth in May pushed both fixed- and adjustable-rate mortgages to new lows for the year, ""Freddie Mac"":http://www.freddiemac.com reported Thursday.

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The GSE's study showed the 30-year fixed-rate mortgage averaging 4.49 percent (0.7 point) for the week ending June 9. That's down from 4.55 percent last week and the 30-year's lowest mark since the second week of December.

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The 15-year fixed rate came in at an average of 3.68 percent (0.7 point) this week, down from 3.74 percent reported the week prior. It hasn't been lower since November of last year.

Adjustable-rate mortgages (ARMs) also headed lower in Freddie Mac's ""weekly market survey"":http://www.freddiemac.com/pmms/, which is based on data collected from about 125 lenders across the country.

The 5-year ARM averaged 3.28 percent this week (0.5 point), down from 3.41 percent last week.

The 1-year ARM was reported at 2.95 percent (0.5 point), dropping from last week's average of 3.13 percent.

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

""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,"" Nothaft explained.