NEW YORK, NY - Mortgage rates declined across the board, with the benchmark 30-year fixed mortgage rate falling to the second lowest level on record, 3.52 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 set a new record low of 2.63 percent, and the same was true for the larger jumbo 30-year fixed mortgage rate which fell to 3.93 percent. Adjustable rate mortgages were also lower, with the 5-year and 10-year ARMs dropping to new lows of 2.63 percent and 3.15 percent, respectively.
Mortgage rates have fallen for seven consecutive weeks, to levels that are at, or near, record lows. With the Federal Reserve maintaining its current pace of bond-buying stimulus and even hinting that they could increase it should inflation move too low or economic growth stall out, there is every reason to believe that mortgage rates will remain at these ultra-low levels for some time. Mortgage rates are closely related to yields on long-term government and mortgage-backed bonds.
The last time mortgage rates were above 5 percent was Apr. 2011. At the time, the average 30-year fixed rate was 5.07 percent, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate currently at 3.52 percent, the monthly payment for the same size loan would be $900.32, a difference of $182 per month for anyone refinancing now.
30-year fixed: 3.52% -- down from 3.57% last week (avg. points: 0.33)
15-year fixed: 2.75% -- down from 2.80% last week (avg. points: 0.30)
5/1 ARM: 2.63% -- down from 2.65% last week (avg. points: 0.24)
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 experts don't expect much change in mortgage rates over the coming week, with 58 percent forecasting that mortgage rates will remain more or less unchanged. Those predicting another decline (25 percent) only slightly outnumber those expecting an increase (17 percent).