Mortgage rates sink on weak economic data

Disappointing jobs report, slow service sector growth sent mortgage rates lower this week; refinancing activity rises, Freddie Mac reports.

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Mortgage Rates
30 yr fixed 4.41%
15 yr fixed 3.33%
5/1 ARM 3.34%
30 yr refi 4.39%
15 yr refi 3.31%

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Rates provided by Bankrate.com.

NEW YORK (CNNMoney.com) -- Mortgage rates dropped this week on weak economic data, sending refinancing activity higher, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 5.87 percent for the week ending Jan. 10, down from 6.07 percent last week.

At this time last year, the 30-year fixed-rate mortgage averaged 6.21 percent.

Unemployment jumped to a two-year high of 5 percent in December and the service sector saw the slowest expansion in nine months, noted Frank Nothaft, Freddie Mac (FRE, Fortune 500) vice president and chief economist in a statement Thursday.

Additionally, the National Association of Realtors suggested a drop in pending home sales for November signaled a possible slowdown in December.

"As a result, mortgage rates came down across the board, with 30-year fixed mortgage rates at their lowest level in more than two years," Nothaft said.

"Because average mortgage rates have come down more than a quarter of a percentage point in the past two weeks, there has been a pickup in refinance activity as borrowers take advantage of the lower rates," he added.

Freddie Mac said 15-year fixed-rate loans averaged 5.43 percent, down from 5.68 percent last week. A year ago, the 15-year rate averaged 5.96 percent.

Five-year adjustable-rate mortgages (ARMs) averaged 5.63 percent this week, down from 5.78 percent last week. A year ago, the 5-year rate averaged 6.03 percent.

One-year Treasury-indexed ARMs averaged 5.37 percent, down from 5.47 percent last week. At this time last year, the 1-year ARM averaged 5.44 percent.  To top of page



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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.