National mortgage rates plunge

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.

"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.
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