Mortgage Rates Dip After Bad Jobs Report

On the heels of this week's negative jobs report, long-term U.S. mortgage rates dropped for the first time in three weeks.

According to Freddie Mac, this drop marks the 10th consecutive week the 30-year mortgage rate averaged under 3.7 percent, which is allowing buyers an extended chance to lock in low rates during housing's busiest time of year.

"Growing optimism about the state of the economy was quickly erased with May's employment report," says Sean Becketti, Freddie Mac’s chief economist. "The disappointing release caused an immediate flight to quality resulting in the 10-year Treasury yield dropping 10 basis points on Friday."

Freddie Mac reports the following national mortgage rate averages for the week:

• 30-year fixed-rate mortgages: averaged 3.60 percent with an average 0.5 point this week, down from its average of 3.66 percent last week. A year ago rates averaged 4.04 percent. 
• 15-year fixed-rate mortgages: this week averaged 2.87 percent with an average 0.5 point, down from last week when it averaged 2.92 percent. A year ago rates averaged 3.25 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 2.82 percent this week with an average 0.5 point, down from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 3.01 percent.

Source Freddie Mac.  Read more.