NEW YORK, NY - Mortgage rates finally retreated this week, following a consecutive six week rate increase, with the benchmark 30-year fixed mortgage rate slipping to 4.12 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.32 discount and origination points.
The average 15-year fixed mortgage dropped to to 3.30 percent, while the larger jumbo 30-year fixed mortgage rate is now at 4.29 percent. Adjustable rate mortgages moved lower also. The popular 5-year adjustable rate dipped to 2.99 percent. The average 7-year ARM is at 3.22 percent and the 10-year is now 3.57 percent.
Mortgage rates broke a 6-week streak of increases, with mortgage rates dipping slightly ahead of the much anticipated Federal Open Market Committee meeting. But the pullback may prove to be short-lived, given a sharp increase in long-term bond yields following some of Fed Chairman Ben Bernanke's comments. Mortgage rates are closely related to yields on long-term government 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 4.12 percent, the monthly payment for the same size loan would be $968.72, a difference of $114 per month for anyone refinancing now.
30-year fixed: 4.12% -- down from 4.14% last week (avg. points: 0.34)
15-year fixed: 3.30% -- down from 3.32% last week (avg. points: 0.26)
5/1 ARM: 2.99% -- up from 3.00% last week (avg. points: 0.27)
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 respondents were mixed this week with 40 percent expecting mortgage rates to remain more or less unchanged and another 40 percent predicting mortgage rates will increase. Twenty percent forecast further decreases in mortgage rates in the coming week.
Source: BankRate.com / #Housing #Economy