NEW YORK, NY - Mortgage rates pulled back, with the benchmark 30-year fixed mortgage rate falling to 4.62 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.35 discount and origination points.
The average 15-year fixed mortgage settled at 3.66 percent, while the larger jumbo 30-year fixed mortgage rate dropped to 4.77 percent. Adjustable rate mortgages were lower also, with the popular 5-year adjustable rate reverting to where it was two weeks ago at 3.61 percent, while the 10-year ARM stepped back to 4.14 percent.
One week after jumping to a two-year high, mortgage rates reversed course and pulled back. Weak economic reports on new home sales and durable good orders, coupled with nervousness about a potential military strike against Syria helped drive mortgage rates lower. Any time there is nervousness in financial markets, investors gravitate to the safety of U.S. government debt, to which mortgage rates are closely related.
As recently as May 1st, the average 30-year fixed mortgage rate was 3.52 percent. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a difference of $127 per month for anyone that waited too long.
30-year fixed: 4.62% -- down from 4.74% last week (avg. points: 0.35)
15-year fixed: 3.66% -- down from 3.75% last week (avg. points: 0.23)
5/1 ARM: 3.61% -- down from 3.69% last week (avg. points: 0.23)
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. Nearly half of the respondents, 46 percent, expect mortgage rates to remain more or less unchanged, with 36 percent predicting that mortgage rates will pull back further in the coming week. Just 18 percent forecast an increase in mortgage rates in the next week.