NEW YORK, NY - Mortgage rates dropped again, with the benchmark conforming 30-year fixed mortgage rate falling to 4.82 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.4 discount and origination points. The average 15-year fixed mortgage settled at 4.00 percent, and the larger jumbo 30-year fixed rate retreated to 5.26 percent. Adjustable rate mortgages established new lows, with the average 5-year ARM sinking to 3.52 percent and the 7-year ARM dropping to 3.76 percent.
A surprising spike in weekly filings for unemployment and a perceived loss of economic momentum have helped in bringing Treasury yields and mortgage rates to the lowest point since last December. Not even a better-than-expected report on April job growth could alter the trajectory. But with inflation readings on deck, the risk could tilt to the upside over the next week. Regardless, both fixed and adjustable mortgage rates remain at some of the lowest levels ever recorded.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed 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 4.82 percent, the monthly payment for the same size loan would be $1,051.75, a difference of $190 per month for anyone 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.
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. This week, half of the panelists expect mortgage rates to rise, while 44 percent predict mortgage rates will remain more or less unchanged. Just 6 percent forecast further declines in the coming week.
For the full mortgage Rate Trend Index, go to: www.bankrate.com/RTI
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