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Freddie Mac: Joblessness affecting rates

July 14, 2011 at 3:20 PM
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MCLEAN, Va., July 14 (UPI) -- U.S. mortgage rates were lower after the recent weak jobs report and an increase in the unemployment rate, Freddie Mac said Thursday.

A 30-year, fixed-rate mortgage averaged 4.51 percent for the week ending Thursday, down from last week, when it averaged 4.60 percent, the Federal Home Loan Mortgage Corp. said in a release.

"Long-term bond yields and mortgage rates fell this week following a weak employment report. The economy added 18,000 jobs in June, well below the market consensus forecast, and the unemployment rate rose to 9.2 percent, the highest since December 2010," said Frank Nothaft, vice president and chief economist at Freddie Mac, based in McLean, Va. "In addition, employee wages stagnated. These factors may lead to less consumer spending, which in turn, reduces the threat of inflation in the near term."

A 15-year, fixed-rate this week averaged 3.65 percent, also down from last week when it averaged 3.75 percent, Freddie Mac said.

A five-year, Treasury-indexed hybrid adjustable-rate mortgage averaged 3.29 percent for the week ending Thursday, lower than last week's 3.30 percent.

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