U.S. Fixed Mortgage Rates Fall

Average fixed mortgage rates in the U.S. declined in the latest week, returning to near their lows for the year, according to mortgage-finance company Freddie Mac (FMCC).

"Fixed mortgage rates were down on a week filled with bleak forward projections from the Federal Reserve and concern over growth in Europe," Freddie Mac Chief Economist Frank Nothaft stated Thursday.

"Despite gloomy vernacular from the Fed, mortgage purchase applications were up 2% on the week and the labor market added 248,000 jobs, beating expectations and lowering headline unemployment to 5.9%."

For the week ended Thursday, the 30-year fixed-rate mortgage averaged 4.12%, compared with 4.19% a week earlier and 4.23% a year earlier. Rates on 15-year fixed-rate mortgages averaged 3.3%, compared with 3.36% the previous week and 3.31% a year earlier.

Five-year Treasury-indexed hybrid adjustable-rate mortgages, or ARMs, on average, were at 3.05%, compared with 3.06% the previous week and 3.05% a year earlier. One-year Treasury-indexed ARM rates on average were 2.42%, unchanged from the previous week and down from 2.64% a year earlier.

Write to Tess Stynes at [e-mail]

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