Mortgage rates fell this week as consumers cut their spending amid an economic downturn and a major slump in the labor market.

Mortgage finance firm Freddie Mac reported Nov. 6 that 30-year fixed-rate mortgages averaged 6.2 percent this week. That’s down from 6.46 percent last week and below 6.24 percent, the rate at this time last year.

Rates on 15-year fixed-rate loans fell to 5.88 percent from 6.19 percent last week. A year ago, the rate was 5.90 percent.

Five-year adjustable-rate mortgages fell to 6.19 percent, from 6.36 percent last week. A year ago, the rate was 5.89 percent.

The rate on a one-year adjustable-rate mortgage fell to 5.25 percent from 5.38 percent last week. At this time last year, the rate was 5.50 percent.

Rates for 30-year fixed-rate mortgages have been at 6 percent or higher for four straight weeks. Between the week of Oct. 9 and Oct. 16, 30-year mortgages saw their biggest weekly jump since April 1987, rising from an average 5.94 percent to 6.46 percent.

Source:  BizJournal