NEW YORK, NY - The benchmark conforming 30-year fixed mortgage rate retreated from 4.38 percent to 4.33 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 inched lower to 3.57 percent while the larger jumbo 30-year fixed rate held steady at 4.89 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM dropping to 3.22 percent and the 7-year ARM sliding to 3.43 percent.
Mortgage rates were rather subdued once again, in contrast to the volatility seen earlier in the month. At these low rates, there is an incentive for homeowners to refinance. With millions of homeowners hemmed in by negative equity, a much-needed and long overdue enhancement to the government's Home Affordable Refinancing Program was announced this week. By eliminating the 125 percent loan-to-value cap to facilitate refinancing for more borrowers, the goal is to enable borrowers to boost spending – and the economy – or accelerate debt repayment on the underwater mortgages.
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 4.33 percent, the monthly payment for the same size loan would be $993.27, a difference of $248 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. There is no clear consensus this week, with 42 percent of the panelists expecting mortgage rates to remain more or less unchanged. The remainder are evenly split, with 29 percent forecasting an increase in rates and an equal 29 percent predicting a decline in mortgage rates over the next week.
Bankrate is a leading publisher, aggregator and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, our flagship website, and other owned and operated personal finance websites, including CreditCards.com, Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, Nationwide Card Services, InsuranceQuotes.com, CarInsuranceQuotes.com, InsureMe, Bankrate.com.cn, CreditCards.ca, NetQuote, and CD.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of nearly 600 local markets in all 50 U.S. states, Bankrate generates over 172,000 distinct rate tables capturing on average over three million pieces of information daily. Bankrate develops and provides web services to over 75 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC and Bloomberg. In addition, Bankrate licenses editorial content to over 100 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times and The Boston Globe.