National Mortgage Rates Keep Dropping

National Mortgage Rates Keep Dropping NEW YORK, NY - Mortgage rates fell to yet another low point this week, with the average conforming 30-year fixed mortgage rate dropping to 4.81 percent, according to's weekly national survey. The average 30-year fixed mortgage has an average of 0.44 discount and origination points. The average 15-year fixed mortgage also hit another new low, retreating to 4.26 percent, while the larger jumbo 30-year fixed rate declined to 5.63 percent, the lowest since March 2004. Adjustable rate mortgages were mostly lower, with the average 5-year ARM falling to 4.13 percent while the average 7-year ARM sank to 4.54 percent.

A run of disappointing economic data – from housing, to jobs, to consumer spending – has kept mortgage rates on a downswing. Even the Federal Open Market Committee struck a more cautious tone in their post-meeting statement issued Wednesday. Nervous investors around the globe continue to buy Treasury securities, driving both bond yields and mortgage rates lower. Mortgage rates are closely tied to yields on long-term government debt. Lingering doubt about the sustainability of the U.S. economic recovery will keep mortgage rates near present levels.

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 4.81 percent, the monthly payment for the same size loan would be $1,050.54, a savings of $191 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:

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 – 55 percent - say mortgage rates will remain more or less unchanged, while 35 percent expect mortgage rates to rebound from current lows. Just 10 percent predict further decreases in mortgage rates.

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! (Nasdaq: YHOO), America Online (NYSE: AOL), The Wall Street Journal and The New York Times (NYSE: 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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