Fixed mortgage rates drop in week

WASHINGTON, Dec. 11 (UPI) -- Interest rates for 30-year, fixed-rate U.S. mortgages fell modestly during the week, the Federal Home Loan Mortgage Corp. said Thursday.

The 30-year, fixed-rate mortgage averaged 5.47 percent with an average 0.7 points in the week ending Dec. 11, Freddie Mac said.

A week ago, 30-year, fixed-rate mortgages averaged 5.53 percent, while a year ago rates were 6.11 percent.

At 5.2 percent with an average 0.7 points, the 15-year, fixed-rate average also declined, dropping from the previous week's average of 5.33 percent.

"Following the release of the November employment report, which showed the largest monthly decline in jobs since December 1974, bond yields fell slightly this week allowing fixed-rate mortgage rates room to ease back a little further," said Frank Nothaft, Freddie Mac vice president and chief economist.

"The housing market still hangs in the balance, however," he said, noting pending home sales fell 1 percent in October, while conventional mortgage applications rose in the most recent week.