McLEAN, Va. – Long-term mortgage rates slid this week to their lowest since the end of May as a weakening labor market dragged down the government debt yields used to peg home loan costs.
The average for the 30-year loan dipped to 5.20% this week, from 5.32% last week, and 6.37% a year ago; while the average for the 15-year, fixed-rate mortgage declined to 4.69%, from 4.77%, and 5.91% a year earlier.
Short-term rates also moved lower, with the average for the five-year ARM dipping to 4.82%, from 4.88% last week; and the average for the one-year ARM also dropping to 4.82%, from 4.94% last week.
"Interest rates for 30-year fixed-rate mortgages fell for the second week in a row to the lowest level in six weeks amid market concerns over a weakening labor market," said Frank Nothaft, chief economist for Freddie Mac.
The most recent jobs report issued by the government last week showed a 9.5% unemployment rate in June, the highest since August 1983.
Weaker economic reports helped lower the yields on Treasury securities, which are used to benchmark mortgage rates.
