Mortgage Rates Fall After Weak Jobs Report
WASHINGTON – Mortgage rates retreated this week along with long-term bond yields amid weaker-than-expected jobs gains and an increase in the unemployment rate.
Freddie Mac’s weekly survey found the average rate for the 30-year, fixed-rate loan slipped to 4.51% this week, from 4.60% last week; while the average for the 15-year mortgage fell to 3.65%, from 3.75%.
ARM rates also moved lower, with the average for the five-year ARM inching down to 3.29%, from 3.30%; and the average for the one-year ARM slipping to 2.95%, from 3.01% last week.
“Long-term bond yields and mortgage rates fell this week following a weak employment report,” said Frank Nothaft, chief economist for Freddie Mac. “The economy added 18,000 jobs in June, well below the market consensus forecast, and the unemployment rate rose to 9.2%, the highest since December 2010. In addition, employee wages stagnated. These factors may lead to less consumer spending, which in turn, reduces the threat of inflation in the near term.”