NEW YORK, NY - Mortgage rates drifted slightly lower this week, but it was enough to establish a new record low of 4.18 percent on the 30-year fixed rate mortgage, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.34 discount and origination points.
The average 15-year fixed mortgage and jumbo 30-year fixed mortgage also reached new lows of 3.40 percent and 4.62 percent, respectively. Adjustable rate mortgages were mixed, with the average 3-year ARM sinking to 3.45 percent while the 10-year rate inched higher to 3.77 percent.
The movement in mortgage rates continues to be very slight. In the past two months, the average 30-year fixed mortgage rate has remained in a range of less than one-tenth of a percentage point. This type of calm on the mortgage rate front hasn't been seen in nearly two years. But with the European debt crisis still fluid, and an upcoming report on U.S. job growth, two potential catalysts for a more significant move are on the horizon.
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 4.18 percent, the monthly payment for the same size loan would be $975.70, a difference of $266 per month for anyone refinancing now.
30-year fixed: 4.18% --down from 4.21% last week (avg. points: 0.34)
15-year fixed: 3.40% -- down from 3.44% last week (avg. points: 0.36)
5/1 ARM: 3.19% -- down from 3.20% last week (avg. points: 0.32)
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 panel is split, with 42 percent of the respondents expecting mortgage rates to remain more or less unchanged over the next week, while 33 percent forecast a rebound from record lows. Just one-in-four predicts mortgage rates will fall further in the next week.
For the full mortgage Rate Trend Index, go to: www.bankrate.com
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