30-Year Rate Dives Below 6%

The average 30-year fixed mortgage rate fell from 6.07% to 5.87% over the seven-day period ended Jan. 10, according to Freddie Mac's Primary Mortgage Market Survey. The average 15-year fixed mortgage rate fell from 5.68% to 5.43%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 5.78% to 5.63%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.47% to 5.37%, Freddie Mac reported. Fees and points averaged 0.4 of a point for fixed-rate mortgages and one-year ARMs and 0.5 of a point for hybrid ARMs. "The latest employment report showed that the economy added 18,000 jobs in December, the smallest gain since August 2003, and the unemployment rate jumped to a two-year high of 5%," said Frank Nothaft, Freddie Mac's chief economist. ".... [This and other] weak economic reports renewed concerns about economic conditions in the near future. As a result, mortgage rates came down across the board, with 30-year fixed mortgage rates at their lowest level in more than two years." A year ago, the average 30-year and 15-year fixed rates were 6.21% and 5.96%, respectively, and the average hybrid and one-year ARM rates were 6.03% and 5.44%, Freddie Mac said. Freddie can be found online at http://www.freddiemac.com.