Mortgage rates sink amid blues / Investors spooked by job losses, drop-off in manufacturing, low consumer confidence

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(03-09) 04:00 PDT American Capital --

Mortgage rates sank last week, reflecting investors' concerns about the country's economical health.

Freddie Mac, the mortgage company, reported that 30-year fixed-rate mortgages averaged 6.03 percent, down from 6.24 percentage the former week, which had been the peak in more than than three months.

"Weak economical studies that indicated diminutions in the occupation market, slowing in manufacturing and low consumer assurance drove chemical bond outputs less this week, and mortgage rates followed," said Frank Nothaft, Freddie Mac's head economist. "Interest rates for 30-year fixed-rate mortgages are now at the same degrees as they were two hebdomads ago, erasing last week's upward jump."

Other mortgage rates also drop last week. Rates on 15-year fixed-rate mortgages dropped to 5.47 percentage from 5.72 percent. For five-year adjustable-rate mortgages, rates drop to 5.34 percentage from 5.43 percentage while rates on one-year adjustable-rate mortgages dropped to 4.94 percentage from 5.11 percent.

The mortgage rates make not include points. Each mortgage type carried a countrywide norm fee of 0.5 of a point.

A twelvemonth ago, rates on 30-year mortgages stood at 6.14 percent, 15-year mortgage rates averaged 5.86 percent, five-year adjustable-rate mortgages were 5.90 percentage and one-year adjustable-rate mortgages were 5.47 percent.

Housing have been agony through a terrible slack that have dragged down house terms in many parts of the country. The radioactive dust is afflicting both householders and the economic system at large, which many fearfulness is on the threshold of a recession or in one already.

Home foreclosures shot up to a record high in the concluding one-fourth of last year, the Mortgage Bankers Association reported Thursday.

Foreclosures are likely to maintain on rising, even with industry and authorities attempts under manner to assist people at hazard of losing their homes, according to Federal Soldier Modesty President Ben Bernanke and others.

Bernanke called last hebdomad for further alleviation and urged loaners to cut down the amount owed on troubled loans.