NEW YORK, NY - The average conforming 30-year fixed mortgage rate fell to 5.35 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.38 discount and origination points. The average 15-year fixed mortgage was down to 4.61 percent while the larger jumbo 30-year fixed rate plummeted to 6.24 percent. Adjustable rate mortgages were somewhat mixed, with the average 1-year ARM jumping to 5.37 percent and the 5-year ARM sinking to 4.58 percent.
Mortgage rates broke out of their recent range, with the average 30-year fixed mortgage rate falling to a seven-month low of 5.19 percent. With this recent decline, mortgage rates are once again flirting with the record lows seen in the Spring. The drop is only partly due to the weak job market, but also investors repositioning ahead of large government debt auctions. Investors often lighten up on government bonds prior to an auction, and increase exposure to higher-yielding mortgage-backed bonds.
Mortgage rates are more than one full percentage point lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.39 percent, meaning a $200,000 loan would have carried a monthly payment of $1,249.70. With the average rate now 5.19 percent, the monthly payment for the same size loan would be $1,096.99, a savings of $152 per month for a homeowner refinancing now.
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets. For a full analysis of this week's move in mortgage rates, go to: www.bankrate.com/mortgagerates
The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. Panelists are divided this week, with 46 percent forecasting an increase and 45 percent predicting rates will remain more or less unchanged. Just 9 percent expect rates to move lower over the next 30 to 45 days.
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe CreditCardGuide.com and Bankaholic. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2008, Bankrate.com had nearly 72 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: TWX), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers. Bankrate, Inc. was acquired by Apax Partners, one of the world's leading private equity investment group, in September 2009. Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience.
Source: Bankrate