U.S. 30-year mortgage rate slides to six-week low

Posted on July 9, 2009

Again there has been a fall in the U.S. long-term fixed mortgage rates. The rates fell for the third time in four weeks. The rates have slid down up to lowest level in six-weeks.
In the week ended on July 9, the average 30-year rate have declined to 0.12 % point to 5.20 %, it was said by Freddie Mac on Thursday.

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The rate was 6.37 % a year earlier; it is said by the second-largest U.S. home funding company.

In a statement it was said by Frank Nothaft, Freddie Mac’s chief economist, that the Interest rates for 30-year fixed-rate mortgages have fallen for the second week in a row to the lowest level in six weeks amid market concerns over a weakening labor market.

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According to the most recent jobs report that has been issued by the government last week showed the unemployment rate in June was 9.5% which is the highest rate ever recorded since August 1983.

Due to the weaker economic reports the yields on Treasury securities have lowered down, which are used to benchmark mortgage rates.

In April the average 30-year mortgage rate fell to 4.78 %, which was a record low rate dating back to 1971, according to the Freddie Mac’s weekly surveys.

0.7 % interest rate is being charged by the Lenders on 30-year loans in the latest week, which is not changed from the prior week.