NEW YORK, NY - Mortgage rates continue to fall amid disappointing economic news. The benchmark conforming 30-year fixed mortgage rate is now 4.65 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.39 discount and origination points. The average 15-year fixed mortgage hit a new record low of 3.79 percent but the larger jumbo 30-year fixed rate ticked up to 5.19 percent. Adjustable rate mortgages moved lower, with both the average 5-year ARM and 7-year ARM resetting record lows of 3.35 percent and 3.54 percent, respectively.
A disappointing employment report was the key catalyst for lower mortgage rates this week. The latest declines come on the heels of a string of weak economic results that have brought yields on ten-year Treasury notes below 3 percent, and pulled mortgage rates lower for nine consecutive weeks. Mortgage rates are closely related to yields on long-term government debt. Fixed mortgage rates are at the lowest levels since last Thanksgiving and most adjustable rate mortgages have established new record lows.
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 4.65 percent, the monthly payment for the same size loan would be $1,031.27, a difference of $210 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, the majority of panelists, 62 percent, expect mortgage rates to remain more or less unchanged. The remainder are evenly split, with 19 percent forecasting a rebound and 19 percent expecting even lower rates.
For the full mortgage Rate Trend Index, go to: www.bankrate.com
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.
Source: Bankrate.com