Mortgage Rate Down

After an upward trend in last 3 weeks, mortgage rates are down a bit this week on news of disappointing job growth in May coupled with downward revisions for the previous two months. The market is probably having a slight hope that the inflation would be contained.

According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.62% in the week that ended today. This is higher than its 6.67% average last week. At this time last year, the loan averaged 5.56%. The 30-year mortgage has not been higher since the week ending June 13, 2002, when it averaged 6.71%. The 15-year fixed rate averaged at 6.23% this week, down from last week's 6.26%. At this time last year this rate was 5.14%.

Rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) also went lower this week to 6.20% from 6.26% last week. This rate averaged 5.01% a year ago. The 1-year Treasury-indexed ARMs also moved down this week to 5.61%, from 5.68%. At this time in 2005, the ARM averaged 4.21%.