NEW YORK, NY - Renewed economic worries had mortgage rates falling sharply, with the benchmark conforming 30-year fixed mortgage rate now 4.54 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 dropped to a new low of 3.68 percent while the larger jumbo 30-year fixed rate retreated to 5.06 percent. Adjustable rate mortgages moved lower also, with the average 5-year ARM sliding to 3.23 percent and the 7-year ARM falling to 3.52 percent.
With the increase in the debt ceiling taken care of, a barrage of poor economic data means we're back to worrying about the economy. These economic worries and increased odds of a double-dip recession had investors flocking into the safety of U.S. Treasury securities -- their safe-haven status assured -- which fueled the decline in mortgage rates. Fixed mortgage rates are closely related to yields on long-term government bonds.
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 4.54 percent, the monthly payment for the same size loan would be $1,018.13, a difference of $223 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.
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. The panel is split this week, with 44 percent expecting mortgage rates to remain more or less unchanged over the next week. Nearly one in three, or 31 percent, predict mortgage rates will fall further, while the remaining 25 percent forecast a rebound in the upcoming week.
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