Mortgages Reflect Shaky Economy

San Jose Mercury News (CA) (01/11/08) ; Crutsinger, Martin
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 5.87 percent during the week ended Jan. 10 from 6.07 percent the prior week in response to a recent government report revealing a boost in the unemployment rate to 5 percent in December from 4.7 percent in November. The 15-year fixed mortgage rate fell to 5.43 percent from 5.68 percent over the same period. Meanwhile, the five-year adjustable mortgage rate sank to 5.63 percent from 5.78 percent; and the one-year ARM dropped to 5.37 percent from 5.47 percent. Freddie Mac chief economist Frank Nothaft notes that a more than a quarter-point decline in mortgage rates in recent weeks has bolstered refinancing requests.