Mortgage Rates in Holding Pattern

Mortgage Rates in Holding Pattern
NEW YORK, NY - Mortgage rates showed little movement once again this week, with the average conforming 30-year fixed mortgage inching lower to 5.21 percent, according to's weekly national survey. The average 30-year fixed mortgage has an average of 0.45 discount and origination points. The average 15-year fixed mortgage stepped down to 4.54 percent while the larger jumbo 30-year fixed rate held at 5.91 percent. Adjustable rate mortgages were mostly lower, with the average 3-year ARM backpedalling to 4.57 percent while the 5-year ARM retreated to 4.37 percent.

The Federal Reserve is holding interest rates low, showing no indication of raising them and no inclination to sell their substantial holdings of long-term Treasury notes. Mortgage rates are closely related to yields on long-term government debt. By the Fed holding steady, mortgage rates are holding steady, showing very little movement in the past two weeks. Mortgage rates have also been largely unaffected since the Federal Reserve's $1.25 trillion mortgage buyback program came to a close at the end of March. The average 30-year fixed mortgage as of March 31 was 5.23 percent and today it is 5.21 percent.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.21 percent, the monthly payment for the same size loan would be $1,099.46, a savings of $142 per month for a homeowner refinancing now.

To see mortgage rates in your area, go to

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:

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. More than half of the panelists don't foresee much change in mortgage rates, with 53 percent expecting mortgage rates to remain more or less unchanged over the next week. Nearly one-in-three, 31 percent, forecast an increase with just 16 percent predicting further declines in the next seven days.

For the full mortgage Rate Trend Index, go to:

The Bankrate network of companies includes,,, Nationwide Card Services,, Fee Disclosure, InsureMe and Bankaholic. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. 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. reviews more than 4,800 financial institutions in 575 markets in 50 states. provides financial applications and information to a network of more than 75 partners, including Yahoo! ( YHOO), America Online ( AOL), The Wall Street Journal and The New York Times ( NYT).'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 groups, in September 2009. Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience.

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