McLEAN, Va. – The benchmark 30-year mortgage rate slipped below 6% this week, to its lowest level in two years, according to Freddie Mac.
The average rate for the 30-year, fixed-rate loan declined to 5.87% this week, from 6.07% last week; while the average for the 15-year, fixed-rate mortgage dipped to 5.43%, from 5.68%.
ARM rates also fell, again, with the average for the five-year ARM moving to 5.63%, from 5.78% last week; and the average for the one-year ARM going to 5.37%, from 5.47%.
Rates on five-year adjustable-rate mortgages declined to 5.63%, compared to 5.78% last week. Rates on one-year ARMs fell to 5.37%, down from 5.47% last week.
Analysts attributed this week's decline in rates to Friday's employment report, which showed the jobless rate jumping to 5% in December from 4.7% in November, the highest jobless mark in two years and the biggest one-month increase since the 2001 terrorist attacks.
Frank Nothaft, chief economist at Freddie Mac, said because mortgage rates have dropped by more than a quarter-point in the past two weeks, there has been an increase in the number of people refinancing mortgages to more attractive rates, a development which should help spur the economy going forward.
