Mortgage Rates Drop As Labor Market Worries Rise

The mortgage rates for the 30-year fixed rate dropped from last week, with an average of 5.20 percent and 0.7 points for the week ending July 9. This is down from last week when the same mortgage was at 5.32 percent with the same points. Last year at this time, the 30-year fixed rate mortgage averaged 6.37 percent, but with 0.6 points.

The 15-year fixed mortgage rates averaged 4.69 percent with an average 0.7 point. Last week the same mortgage rate averaged 4.77 percent with 0.7 points. A year ago at this time, the 15-year fixed rate mortgage averaged 5.91 percent, but with 0.6 points.

Five-year adjustable-rate mortgages (ARMs) averaged 4.82 percent and 0.6 points. Last week the same mortgage rates were at 4.88 percent and 0.7 points. A year ago, the 5-year ARM averaged 5.82 percent, but with 0.6 points.

One-year Treasury-indexed ARMs averaged 4.82 percent this week with 0.6 points. This is down from last week when it averaged 4.94 percent and 0.6 points. At this time last year, the 1-year ARM averaged 5.17 percent, but with 0.6 points.

Points are pre-paid interest which is paid at the time the mortgage is taken out. The good news about the mortgage rates is that the applications for mortgages are going up again. According to Mortgage Bankers Association mortgage applications this week went up 11 percent as people are taking advantages of the low current mortgage rates. The refinancing activity jumped up as well.