NEW YORK, NY - Mortgage rates declined for a second week in a row, with the benchmark 30-year fixed mortgage rate pulling back to 4.66 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.29 discount and origination points.
Source: BankRate.com / #Housing #Economy
The average 15-year fixed mortgage fell to 3.7 percent, while the larger jumbo 30-year fixed mortgage rate dropped to 4.77 percent. Adjustable rate mortgages were lower across the board. The popular 5-year adjustable rate sank to 3.55 percent, while the 10-year ARM retreated to 4.2 percent.
Mortgage rates have been down for two weeks in a row and with the Federal Reserve deciding not to start scaling back their stimulus, this will keep a lid on mortgage rates for the time being. The slow growth economy, high unemployment, and the looming government budget and debt ceiling debates gave the Fed all the cover they needed to hold off on tapering at this point. However, once the tapering inevitably starts, mortgage rates will likely resume the upward climb.
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 4.66 percent, the monthly payment for the same size loan would be $1,032.47, a difference of $132 per month for anyone that waited too long.
30-year fixed: 4.66% -- down from 4.71% last week (avg. points: 0.29)
15-year fixed: 3.70% -- down from 3.75% last week (avg. points: 0.24)
5/1 ARM: 3.55% -- down from 3.65% 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. Once again, there is no clear consensus, with 46 percent of respondents expecting mortgage rates to pull back further, while 36 percent predict mortgage rates will remain more or less unchanged in the coming week. Just 18 percent predict mortgage rates will rise in the next week.