Mortgage Rates Down on Weak Economic Data

Fixed mortgage rates dropped this week on the heels of a weaker-than-expected jobs report, according to data released by Freddie Mac.

“Mortgage rates drifted downward this week amid signs of a weakening economic recovery. The economy added 74,000 jobs in December, less than the market consensus forecast,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “Retail sales rose 0.2 percent in December, which was nearly half of November’s 0.4 percent increase. Meanwhile, the unemployment rate fell to 6.7 percent which was the lowest since October 2008.”

The average rate for 30-year fixed rate mortgages dropped to 4.41% this week from last week’s 4.51%. A year ago at this time, the 30-year FRM averaged 3.38%.

The 15-year FRM fell to 3.45% this week from last week’s average of 3.56%. Last year at this time, the 15-year FRM averaged 2.66%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage also dropped, falling to 3.10% this week from last week’s average of 3.15%. The 1-year Treasury-indexed ARM remained unchanged this week at 2.56%.

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