NEW YORK, NY - Mortgage rates were mostly lower this week, with the exception being the average 30-year fixed mortgage rates which held at the record low of 4.18 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.33 discount and origination points.
The average 15-year fixed mortgage reset a record low at 3.38 percent. So too, did the jumbo 30-year fixed mortgage which dropped to 4.6 percent. Adjustable rate mortgages were on the move too, with the average 3-year and 5-year ARMs hitting new lows of 3.24 percent and 3.04 percent, respectively.
Records were set across the spectrum of mortgage products, both fixed and adjustable rate mortgages. Fixed mortgage rates were down slightly, as has been the case over the past two months, but adjustable mortgage rates were down in a more pronounced way this week. Despite the more positive tone to U.S. economic data, including an improved job picture, it is the European debt crisis that is fueling these record low mortgage rates.
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.
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 47 percent of the respondents expecting mortgage rates to rise and an equal 47 percent predicting mortgage rates will remain more or less unchanged over the next week. Just 6 percent of respondents forecast that mortgage rates will fall further in the next 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, 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.