Mortgage Rates Fall In Response To Weak Labor Report
December 10, 2004
November Jobs Report Disappoints Markets
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.71 percent, with an average 0.7 points, for the week ending December 9, 2004, down from last week when it averaged 5.81 percent. Last year at this time, the 30-year FRM averaged 6.02 percent.
The average for the 15-year FRM this week is 5.14 percent, with an average 0.6 points, down as well from last week when it averaged 5.23 percent. A year ago, the 15-year FRM averaged 5.36 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.15 percent this week, with an average 0.7 point, down from last week when it averaged 4.19 percent. At this time last year, the one-year ARM averaged 3.77 percent.
“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 vice president and 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 ¼ percent, putting upward pressure on frequently adjusting ARMs.”
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Source: Freddie Mac