NEW YORK, NY - The benchmark conforming 30-year fixed mortgage rate plunged from 4.33 percent to 4.23 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 dropped lower to 3.48 percent as did the larger jumbo 30-year fixed rate slipping to 4.81 percent. Adjustable rate mortgages were also lower this week, with the average 5-year ARM falling to 3.18 percent and the 7-year ARM sliding to 3.37 percent.
Uncertainty about the European financial rescue package caused renewed financial jitters and a stampede back into safe haven U.S. government bonds. This was great news for mortgage shoppers as mortgage rates plummeted to the second-lowest levels on record, as measured by the 30-year fixed rate mortgage. Despite a more optimistic tone of economic data and from the Federal Open Market Committee, it is the European situation that will continue to be the primary driver of mortgage rates in the weeks ahead.
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 4.23 percent, the monthly payment for the same size loan would be $981.54, a difference of $260 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. The majority of panelists, 62 percent, foresee rates dropping even lower next week. Fifteen percent expect mortgage rates to rise, whereas the remaining 23 percent expecting mortgage rates to remain more or less unchanged in the coming week.
For the full mortgage Rate Trend Index, go to: www.bankrate.com
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.com, 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.