NEW YORK, NY - Mortgage rates fell yet again this week. The average 30-year fixed mortgage rate dipped to a record-low 3.52 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.44 discount and origination points.
The average 15-year fixed mortgage rate dropped to a record-low 2.84 percent while the jumbo 30-year fixed mortgage sank to another record of 4.16 percent. Adjustable mortgage rates fell to record lows, too, with the 5-year ARM slipping to 2.67 percent and the 7-year ARM to 2.82 percent on average.
The historically low rates led to a surge in refinances last week. As the Federal Reserve continues its plans to purchase $40 billion worth of mortgage bonds per month, it is unlikely that mortgage rates will spike anytime soon. The September employment report, which will be released Friday by the Labor Department, will help keep rates low if it signals the economy is still struggling and disappoints the market.
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 3.52 percent, the monthly payment for the same size loan would be $900.32, a difference of $341.54 per month for anyone refinancing now.
30-year fixed: 3.52% -- down from 3.55% last week (avg. points: 0.44)
15-year fixed: 2.84% -- down from 2.88% last week (avg. points: 0.29)
5/1 ARM: 2.67% -- down from 2.68% last week (avg. points: 0.40)
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.
For a full analysis of this week's move in mortgage rates, go to www.bankrate.com
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, 58 percent, see little change in mortgage rates over the next seven days. Twenty-five percent expect a decrease in the coming week and 17 percent predict an increase.