Mortgage Rates Drop after Disappointing Job Report
The recent employment report had a major impact on mortgage rates. The report showed that the economy had only added 38,000 jobs in May, a big disappointment.
As a result, mortgage rates fell for the first time in four weeks, to an average of 3.60 percent, down from 3.66 percent the week prior.
A year ago at this time, the average 30-year fixed rate home loan was 4.04 percent, according to Freddie Mac. Rates on home loans have been below 4 percent all year and averaged less than 3.7 percent for the past 10 weeks.
The results of the job report diminished growing optimism about the state of the economy, but helped to make borrowing cheaper for prospective homebuyers.
View Freddie Mac’s Primary Mortgage Market Survey (PMMS) online.
Categories: industry news