NEW YORK, NY - Mortgage rates moved into record low territory again this week, with the average rate on the benchmark 30-year fixed mortgage rate settling at 4.10 percent, a level last seen in February, 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 rate was unchanged, holding at a record low of 3.32 percent, while the jumbo 30-year fixed mortgage ticked lower to 4.61 percent. Adjustable mortgage rates were mostly lower, with the average 3-year, 7-year, and 10-year ARMs setting new record lows of 3.08 percent, 3.19 percent, and 3.52 percent, respectively.
The recurring European debt issues helped drive mortgage rates back down to record low levels. In addition to Europe's debt issues, slowing Chinese economic growth, and concerns about the sustainability of both corporate earnings and U.S. economic health, continue to weigh on investors. When investors get nervous, they gravitate toward the safety of U.S. Treasury securities. Mortgage rates are closely related to yields on long-term government debt.
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 4.10 percent, the monthly payment for the same size loan would be $966.40, a difference of $275 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 the panelists, 63 percent, expect mortgage rates to remain more or less unchanged over the coming week. Just shy of one-third, 31 percent, forecast an increase in mortgage rates, and only 6 percent predict mortgage rates will fall in the next seven days.
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.