NEW YORK, NY - Mortgage rates declined for a fourth consecutive week, with the benchmark 30-year fixed mortgage rate dropping to 4.41 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.27 discount and origination points.
The average 15-year fixed mortgage fell to 3.47 percent, while the larger jumbo 30-year fixed mortgage rate retreated to 4.58 percent. Adjustable rate mortgages were lower also, with the popular 5-year adjustable rate inching lower to 3.4 percent and the 7-year ARM sliding to 3.72 percent.
The government shutdown raised just enough concern about potential impact on the economy to bring mortgage rates lower. While the government shutdown has garnered a lot of attention, the truly significant event will be the coming deadline to increase the debt ceiling. While the usual silly games from Washington are expected, the downside risk is huge. Should a full debt default – where the U.S. fails to make interest payments on our outstanding debt – occur, it would be an unmitigated disaster in the economy and financial markets. For this reason, odds are highly in favor of a last minute deal.
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 4.41 percent, the monthly payment for the same size loan would be $1,002.70, a difference of $102 per month for anyone that waited too long.
30-year fixed: 4.41% -- down from 4.47% last week (avg. points: 0.27)
15-year fixed: 3.47% -- down from 3.53% last week (avg. points: 0.26)
5/1 ARM: 3.40% -- down from 3.41% last week (avg. points: 0.20)
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 group is divided, with 42 percent predicting rates will fall and 42 percent expecting rates will remain unchanged. The remaining 16 percent forecast an increase in mortgage rates in the next week.