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Fifteen-Year Loan Hits New Low As Economic Worries Grow

Mortgage rates fell once more as economic worries accelerate on the heels of a disappointing jobs report and debt crises overseas, with rates for the 15-year fixed-rate mortgage slamming into new lows.


Mortgage giant ""Freddie Mac"":http://www.freddiemac.com/ found the 15-year loan cresting at 3.11 percent, a new all-time low below 3.13 percent seen in early March.

Freddie also said that the 30-year loan yet again averaged 3.88 percent, down from 3.98 percent last week. The 5-year


adjustable-rate mortgage (ARM) fell from 2.86 percent to 2.85 percent, while the 1-year ARM went up to 2.80 percent from 2.78 percent.

""Fixed mortgage rates eased for the third consecutive week following long-term Treasury bond yields lower after a weaker than expected employment report for March,"" ""Frank Nothaft"":http://www.freddiemac.com/bios/exec/nothaft.html, VP and chief economist with Freddie, said in a statement.

""Although the unemployment rate fell to the lowest reading since January 2009, the overall economy added just 120,000 new jobs in March, nearly half that of the market consensus forecast,"" he added.

""Bankrate.com"":http://www.bankrate.com/ found similar interest rates for mortgage loans, with the 15-year falling from 3.42 percent to 3.32 percent this week.

""Mortgage rates dropped sharply, spurred by a disappointing report on job growth for the month of March,"" the finance Web site said in a statement. ""Add to that the ongoing European debt issues and forecasts for slower growth in corporate earnings, and you have the recipe for lower mortgage rates. Mortgage rates are closely related to yields on long-term government bonds.""

For Bankrate.com, 5-year and 1-year ARMs fell from 3.15 percent last week to 3.03 percent this week.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.

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