Eight-Month Low in New Jobs Pushes Mortgage Rates to 4.49 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which showed weaker than expected job growth in May pushing both fixed and adjustable-rate mortgages to new lows for the year. The 30-year fixed-rate mortgage (FRM) averaged 4.49 percent, with an average 0.7 point for the week ending June 9, 2011, down from last week when it averaged 4.55 percent. Last year at this time, the 30-year FRM averaged 4.72 percent. The 15-year FRM averaged 3.68 percent with an average 0.7 point for the week, down from last week when it averaged 3.74 percent. A year ago at this time, the 15-year FRM averaged 4.17 percent. "Long-term Treasury yields moved lower following a weak jobs report and mortgage rates followed suit," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The economy added 54,000 jobs in May, the fewest in eight months, and factories cut payrolls for the first time in seven months. As a result, the unemployment rate rose to 9.1 percent, representing the highest rate since December." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.28 percent this week, with an average 0.5 point, down from last week when it averaged 3.41 percent. A year ago, the five-year ARM averaged 3.92 percent. The one-year Treasury-indexed ARM averaged 2.95 percent this week with an average 0.5 point, down from last week when it averaged 3.13 percent. At this time last year, the one-year ARM averaged 3.91 percent. "The housing market continues to be fragile across the nation as well," said Nothaft. "In its latest regional economic review released June 8th, the Federal Reserve Board indicated that residential sales and home prices showed continued weakness in most Districts."