NEW YORK, NY - Mortgage rates moved even lower this week, with the average conforming 30-year fixed mortgage rate hitting a record low of 4.66 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.42 discount and origination points. The average 15-year fixed mortgage dropped to 4.11 percent, and the larger jumbo 30-year fixed rate remained at 5.43 percent. Adjustable rate mortgages were mixed, with the average 5-year ARM sliding to 3.95 percent and the average 1-year ARM remaining at 4.80 percent.
Mortgage rates hit yet another record low as worries about weak economic growth just won't go away. Recent speculation that the Federal Reserve may resume measures such as purchasing mortgage-backed bonds or government debt - perhaps as soon as next week's FOMC meeting - helped bring rates lower. Whether or not the Fed pursues such a course likely hinges on the July jobs report to be released Aug. 6. Even without any action by the Fed, the next move in mortgage rates is also pegged to the employment report.
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 4.66 percent, the monthly payment for the same size loan would be $1,032.47, a savings of $209 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.
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. According to the majority of panelists mortgage rates will remain relatively the same, with 61 percent forecasting that mortgage rates will remain more or less unchanged. Just 28 percent expect mortgage rates to rise and a mere 2 percent predict mortgage rates will fall in the next week.
For the full mortgage Rate Trend Index, go to: www.bankrate.com/RTI
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