April 12, 2012
Written by Lily Leung
Mortgage rates dropped this
week and remain below the 4-percent mark amid a weak jobs report, based
on the latest numbers from Freddie Mac.
The 30-year fixed rate
averaged 3.88 percent this week, down from 3.98 percent last week. A
year ago, it was 4.91 percent. The all-time low was 3.87 percent, set in
February.
The 15-year fixed rate
fell to a new all-time low at 3.11 percent, falling from 3.21 percent
last week. This rate was at 4.13 percent a year ago. The previous low
for the 15-year mortgage rate was 3.13 percent in early March, Freddie
Mac's records show.
The
falling rates coincide with a weaker-than-expected jobs picture. The
country gained 120,000 jobs instead of the expected 200,000.
San Diego economist Kelly Cunningham told U-T San Diego jobs reporter Jon
Horn that high gas prices and increased shopping on the web hurt retail sales, which factored into the latest jobs numbers.
Here's what Freddie Mac economist Frank Nothaft had to say about rates in relation to the broader market:
Fixed mortgage rates eased for the third consecutive week following long-term Treasury bond yields lower after a weaker than expected employment report for March. Although the unemployment rate fell to the lowest reading since January 2009, the overall economy added just 120,000 new jobs in March, nearly half that of the market consensus forecast. On a more positive note, the Federal Reserve reported hiring was steady, or showed a modest increase, across many of its Districts in its April 11 Beige Book of regional economic conditions.
Every
week, Freddie Mac officials calculate average mortgage rates by
compiling rates from lenders across the U.S. on Monday through
Wednesday. The rates can vary drastically every day and don't include
points, which are add-on fees. One point equals 1 percent of the total
loan amount.
Source: UT San Diego
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