NEW YORK, NY - Mortgage rates pulled back for a second consecutive week, and remain near record lows. The benchmark 30-year fixed mortgage rate settled at 3.57 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 2.89 percent and the larger jumbo 30-year mortgage set a new record low of 4.11 percent. Adjustable mortgage rates were mostly lower, with the 5-year ARM dipping to 2.72 percent and the 10-year ARM sinking to a new low of 3.2 percent.
In the wake of Hurricane Sandy, with both the monthly jobs report and the presidential election looming, and the fiscal cliff unresolved, investors are understandably nervous. Such nervousness and uncertainty fuels demand for the safety and security of government securities. Fixed mortgage rates are closely related to the yields on long-term government bonds. Just some of this – but not all – will be resolved in the coming week, so expect mortgage rates to be in flux for some time.
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 3.57 percent, the monthly payment for the same size loan would be $905.92, a difference of $336 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 3.57% -- down from 3.61% last week (avg. points: 0.43)
15-year fixed: 2.89% -- down from 2.90% last week (avg. points: 0.30)
5/1 ARM: 2.72% -- down from 2.73% last week (avg. points: 0.38)
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 panelists are divided this week, with 39 percent predicting mortgage rates will fall further and an equal 39 percent forecasting that rates will hold steady in the next seven days. Just 22 percent expect mortgage rates to increase in the coming week.