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Mortgage Rates Race to New Lows as Job Growth Wavers

As the employment situation continues to raise concerns, fixed rates fell even lower, slipping yet again to record lows, according to a survey from ""Freddie Mac"":http://www.freddiemac.com/ released Thursday.

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The 30-year fixed-rate mortgage averaged 3.67 percent (0.7 point) for the week ending June 7, falling from last week's average of 3.75 percent. Last year at this time, the 30-year fixed was 4.49 percent.

The 15-year fixed rate declined even further below 3 percent to 2.94 percent (0.7 point), down from last week's 2.97 percent. A year ago at this time, the 15-year was 3.68 percent.

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""Fixed mortgage rates reached new record lows for the sixth consecutive week as long-term Treasury bond yields declined further following downwardly revised economic growth and job creation data,"" said ""Frank Nothaft"":http://www.freddiemac.com/bios/exec/nothaft.html, VP and chief economist for Freddie Mac.

Nothaft cited recent reports showing gross domestic product rose only 1.9 percent in the first quarter as well as the disappointing 69,000 jobs added in May. In addition, the unemployment rate moved to 8.2 percent from 8.1 percent the month before in April.

The 5-year ARM remained unchanged from last week at 2.84 percent (0.7 point); a year ago, the 5-year ARM averaged 3.28 percent.

The 1-year ARM moved up to 2.79 percent (0.4 point), up from last week's 2.75 percent. Last year, it averaged 2.95 percent.

Finance Web site ""Bankrate.com"":http://www.bankrate.com/ also released its survey on mortgage rates and reported record-low averages. The 30-year fixed slipped to 3.92 percent, down from last week when it averaged 3.94 percent. On the other hand, 15-year fixed rose slightly to 3.16 percent from last week's 3.15 percent.

The five-year fell to 2.99 percent from 3.01 percent last week.

Bankrate.com's national survey uses data provided by the top 10 banks and thrifts in the top 10 markets.

About Author: Esther Cho

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