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Thursday, July 09, 2009

Mortgage Rates Fall for Second Week in a Row

By Hope Holland

FOXBusiness

Freddie Mac (FRE), the nation’s second-largest mortgage buyer operating under a federal charter, released the results of the current week’s rate survey that showed mortgage rates in the U.S. fell for a second consecutive week and the third time in four weeks.

The Virginia-based company said the 30-year fixed-rate mortgage slid in the past week to an average 5.2% for the week ended Thursday, from last week’s 5.32% average and the year-ago 6.37%. The survey showed the 30-year fixed-rate mortgage dropped 0.12 percentage point.

According to Frank Nothaft, Freddie Mac’s chief economist, mortgage rates are influenced by the job market.

“Interest rates for 30-year fixed-rate mortgages fell to the lowest level in six weeks amid market concerns over a weakening labor market,” said Nothaft. “The economy lost 467,000 jobs in June, more than the market consensus, and the unemployment rate rose to 9.5 percent, the highest since August 1983.”

The survey said rates on 15-year fixed-rate mortgages ended up at 4.69% with an average 0.7 point, down from 4.77% last week and 5.91% last year.

The one-year Treasury-indexed ARMs averaged 4.82% this week, down from 4.94% with an average 0.6 point last week and down from 5.17% a year ago, while the five-year Treasury-indexed hybrid adjustable-rate mortgage was down from last week’s 4.88% and last year’s 5.82% to an averaged 4.82% with an average 0.6 point.

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