NEW YORK, NY - Mortgage rates fell to the lowest level since mid-June, with the benchmark 30-year fixed mortgage rate down to 4.27 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 settled at 3.37 percent, while the larger jumbo 30-year fixed mortgage rate sank to 4.38 percent. Adjustable rate mortgages moved notably lower also, with the popular 5-year ARM dropping to 3.27 percent and the 10-year adjustable rate sliding to 3.94 percent.
Even though the government shutdown ended and a debt ceiling crisis was avoided, mortgage rates staged quite a retreat this week. Why? Worries about the damage inflicted on the economy by the circus in Washington, and a disappointing September jobs report, drove investors into the haven of government bonds, driving yields lower. Mortgage rates are closely related to yields on long-term government bonds. As we play catch-up on economic data, and get a read on the economy over the next month or so, this uncertainty should keep a lid on mortgage rates.
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 4.27 percent, the monthly payment for the same size loan would be $986.22, a difference of nearly $86 per month for anyone that waited too long.
30-year fixed: 4.27% -- down from 4.42% last week (avg. points: 0.32)
15-year fixed: 3.37% -- down from 3.49% last week (avg. points: 0.24)
5/1 ARM: 3.27% -- down from 3.31% last week (avg. points: 0.24)
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. More than three-quarters of respondents, 77 percent, believe mortgage rates will continue to fall in the coming week, while 15 percent expect mortgage rates to remain more or less unchanged. Just 8 percent predict that mortgage rates will rise in the next week.
Source: BankRate.com / #Housing #Economy