Mortgage rates fall sharply

WASHINGTON — Mortgage rates around the country fell sharply this week, a development that should bring a dose of good cheer for people wanting to buy a home.

Freddie Mac’s weekly survey released Thursday showed that rates on 30-year, fixed-rate mortgages dropped this week to 5.71 percent, compared with 5.81 percent last week. This week’s rate was the lowest since early November.

Rates on 30-year mortgages hit a high this year of 6.34 percent the week of May 13. After that, rates, while bouncing around, had drifted lower as the economy hit a soft spot. Rates shot up last week as the economy flashed growth signs, but fell this week as a lackluster jobs report eased investors’ inflation fears.

“Responding to a weak labor market report that showed November job growth to be far less than had been anticipated, long-term yields — and that includes mortgage rates — reversed last week’s hike,” said Frank Nothaft, Freddie Mac’s chief economist.

Rates on 15-year, fixed-rate mortgages, a popular option for refinancing, sank to 5.14 percent this week, from 5.23 percent last week.

One-year adjustable rate mortgages fell to 4.15 percent, compared with last week’s 4.19 percent.

The nationwide averages for mortgage rates do not include add-on fees known as points. Thirty-year and one-year ARMs each carried a 0.7 point fee. Fifteen-year mortgages carried a 0.6 point fee.

A year ago, rates on 30-year mortgages averaged 6.02 percent with 15-year mortgages at 5.36 percent and one-year ARMs at 3.77 percent.