NEW YORK, NY - Mortgage rates declined for a third week in a row, with the benchmark 30-year fixed mortgage rate plunging to 4.47 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 fell to 3.53 percent, while the larger jumbo 30-year fixed mortgage rate dropped to 4.64 percent. Adjustable rate mortgages were lower also, with the popular 5-year adjustable rate dropping to 3.41 percent and the 7-year ARM now at 3.77 percent.
The Federal Reserve's decision not to begin tapering their stimulus will give mortgage shoppers a reprieve from rising rates, but only until the tapering starts. As for when that will be, much depends on the outcome of the government budget and debt ceiling debates. If they are resolved smoothly and without incident, the Fed could taper as soon as their next meeting in late October.
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 4.47 percent, the monthly payment for the same size loan would be $1,009.81, a difference of $109 per month for anyone that waited too long.
30-year fixed: 4.47% -- down from 4.66% last week (avg. points: 0.33)
15-year fixed: 3.53% -- down from 3.70% last week (avg. points: 0.23)
5/1 ARM: 3.41% -- down from 3.55% last week (avg. points: 0.21)
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 overwhelming consensus is that mortgage rates will keep falling, with 70 percent predicting a decline in the coming week. Twenty percent expect mortgage rates to remain more or less unchanged, and just 10 percent forecast an increase in the next week.