Rates Fall

The average 30-year fixed mortgage rate fell to 5.71% for the week ending Dec. 10 from 5.81% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.23% to 5.14%, while the average rate for one-year Treasury-indexed ARMs declined from 4.19% to 4.15%. Fees and points averaged 0.6 of a point for 15-year fixed-rate mortgages and 0.7 of a point for ARMs and 30-year FRMs. "Responding to a weak labor market report that showed November job growth to be far less than had been anticipated, long-term yields -- and that includes mortgage rates -- reversed last week's hike and fell to the previous week's level," said Frank Nothaft, Freddie Mac's chief economist. "However, many other indicators remain strong, and this we think will lead the Federal Open Market Committee to raise short-term rates another quarter point to a target of 2 1/4%, putting upward pressure on frequently adjusting ARMs." A year ago, the average 30-year and 15-year fixed rates were 6.02% and 5.36%, respectively, and the average one-year ARM rate was 3.77%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.