Freddie Mac: Mortgage Interest Rates Fell Again On Weak Jobs Report

Posted by Patrick Barnard on June 09, 2016 No Comments
Categories : Residential Mortgage

After rising slightly the previous week, mortgage rates ticked back down during the week ended June 9 due mainly to a weaker-than-expected jobs report and an assumption that, subsequently, the Fed will not vote to raise short-term interest rates this month.

According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year, fixed-rate mortgage (FRM) was 3.60%, down from 3.66% the previous week. A year ago at this time, the 30-year FRM averaged 4.04%.

The average rate for a 15-year FRM was 2.87%, down from 2.92%. A year ago at this time, the 15-year FRM averaged 3.25%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.82%, down from 2.88%. A year ago, the five-year ARM averaged 3.01%.

“Growing optimism about the state of the economy was quickly erased with May’s employment report,” says Sean Becketti, chief economist for Freddie Mac, in a statement. “The disappointing release caused an immediate flight to quality, resulting in the 10-year Treasury yield dropping 10 basis points on Friday. The 30-year, fixed-rate mortgage responded by falling six basis points to 3.60 percent. This week marks the 10th consecutive week the 30-year rate has averaged under 3.7 percent, allowing an extended window for home buyers to take advantage of these historically low borrowing costs.”

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