Reported by the finance company Freddie Mac, long-term mortgage rates dropped weekly for the month of May as unfavorable economic data continued to roll in.

Mortgage rates dipped the 1st week of May. Freddie Mac vice president, Frank Norhaft declared that "weaker economic data reports reduced Treasury bond yields" led to the this drop. Norhaft also commented, "For instance, real economic growth in the first quarter fell short of the market consensus forecast and represented the slowest pace since the second quarter of 2010. In addition, both the manufacturing and service sectors exhibited growth at a slower rate in April."

During the last week of April, the average rate on a fixed 30 year mortgage rate loan dropped from 4.78 percent down to 4.71 percent. The average rate on the fixed 15 year interest rate mortgage fell from 3.97 percent down to 3.89 percent, while one year adjustable rate mortgages remained almost the same and fell from 3.15 percent to 3.14 percent.

Rates slipped even lower during the second week of May. The fixed 30 year interest rate mortgage dropped to 4.63 percent, the 15 year fixed interest mortgage declined to 3.82 percent, and the one year adjustable rate mortgage fell to 3.11 percent. Freddie Mac claimed that the main reason the rates fell was that "the unemployment rate rose to 9 percent from 8.8 percent in March and was the highest reading since January ."

The third week of May, the rates took a minor dip. The fixed 30 year interest rate mortgage slipped to 4.61 percent, and the fixed 15 year interest rate mortgage dipped to 3.80 percent. However the one year adjustable interest mortgage increased to 3.15 percent.

Rates dropped again to a new low for the year during the last week of May. The fixed 30 year interest rate mortgage dropped down to 4.60 percent, the 15 fixed interest dropped to 3.78 percent, and the one year adjustable interest mortgage fell to 3.11 percent.

Exactly what is the forecast for interest rates? In the past six weeks, rates have fallen, and there is no reason to think that they will not keep falling. With the U. S. dollar gaining some ground on the Euro, decreasing inflation pressures, and the continued slowing of the housing market, conditions are right to see another month of low mortgage rates.