NEW YORK, NY - Mortgage rates fell further, pushing the average 30-year fixed mortgage rate to the fourth new record in a row of 3.89 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.
The average 15-year fixed mortgage rate inched lower to 3.16 percent, reversing last week's move, while the jumbo 30-year fixed mortgage held at 4.48 percent. Adjustable mortgage rates were lower too, with the average rate on the popular 5-year adjustable pulling back below the 3 percent mark to a new low of 2.97 percent.
The Federal Reserve is hoping to keep this streak of record low mortgage rates alive. By extending Operation Twist through year-end, the Fed aims to preserve this environment of ultra-low mortgage rates that is facilitating refinancing and putting money into people's pockets that they're not getting through their paychecks.
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 3.89 percent, the monthly payment for the same size loan would be $942.19, a difference of $299 per month for anyone refinancing now.
30-year fixed: 3.89% -- down from 3.91% last week (avg. points: 0.43)
15-year fixed: 3.16% -- down from 3.17% last week (avg. points: 0.35)
5/1 ARM: 2.97% -- down from 3.00% last week (avg. points: 0.33)
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. There is no clear consensus, as half of the panelists expect mortgage rates to remain more or less unchanged over the next seven days. One-third predict an increase in mortgage rates, while just 17 percent forecast further declines in mortgage rates in the coming week.
For the full mortgage Rate Trend Index, go to www.bankrate.com
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, InsureMe, CreditCardGuide.com, Bankaholic, CreditCards.com and NetQuote. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance.