NEW YORK, NY - Mortgage rates moved lower this week, with the average conforming 30-year fixed mortgage rate now 4.59 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 retreated to 4.08 percent, and the larger jumbo 30-year fixed rate slipped to a new record low of 5.22 percent. Adjustable rate mortgages were lower this week, with the average 5-year ARM inching lower to 3.85 percent and the average 3-year ARM slipping to 4.13 percent.
A larger than expected decline in July home sales fueled more worries about the path of the economy and fears of deflation. Economic growth and deflation concerns are the two catalysts behind the notable declines in mortgage rates since Spring. From a refinancing or home purchase standpoint, fixed mortgage rates offer very affordable payments. Would-be borrowers are still reluctant given the weak job market, lack of home equity, and higher down payment requirements.
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 4.59 percent, the monthly payment for the same size loan would be $1,024.09, 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: 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. Bankrate's experts were mixed this week. Half of the panelists – 50 percent – believe mortgage rates will remain unchanged (plus or minus 2 basis points) next week. Thirty percent think rates will fall and the remaining 20 percent think rates will move higher.
For the full mortgage Rate Trend Index, go to: www.bankrate.com/RTI
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe CreditCardGuide.com, Bankaholic, CreditCards.com and NetQuote. 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. Bankrate.com 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). 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 groups, in September 2009. Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience.