Industry News

Mortgage rates fall to 4-month low

30-year fixed averages 5.85% in Freddie Mac survey

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Mortgage rates dropped further below 6 percent this week as weak job growth hinted at economic stagnation, according to surveys conducted by mortgage buyer Freddie Mac and Bankrate. In Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 5.85 percent, down from 5.99 percent a week earlier. This average was the lowest since early April. The 15-year fixed-rate mortgage dropped to 5.24 percent from 5.4 percent last week. Points on both the 30- and 15-year averaged 0.6. One-year Treasury-indexed adjustable-rate mortgages held steady at 4.08 percent this week, with an average 0.6 point. "Last Friday's unexpectedly weak employment report caused interest rates on long-term Treasury bonds and, by extension, mortgage rates, to fall as investors worried about the health of the U.S. economy," said Freddie Mac economist Amy Crews Cutts. In's weekly survey of large lenders, fixed mortgage rates dropped sharply in response to weak job growth during July, falling b...