NEW YORK, NY - Mortgage rates showed only slight movement this week, with the benchmark 30-year fixed mortgage rate inching lower for a second consecutive week to 4.45 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.36 discount and origination points.
The average 15-year fixed mortgage was down for a third consecutive week, to 3.46 percent, the lowest level since right before Thanksgiving. On larger jumbo mortgages, the average 30-year rate settled at 4.49 percent. Adjustable rate mortgages were also lower, with the popular 5-year adjustable retreating to a 4-month low of 3.26 percent.
The mortgage waters have been particularly calm over the last 30 days. The disappointing economic data hasn't been so bad as to raise concerns of a sharp economic slowdown – yet – but have been just tepid enough to cast doubt on the idea of the economy suddenly accelerating. So we end up with this Goldilocks scenario of economic growth that isn't too hot, but isn't too cold, which has kept bond yields and mortgage rates in check. Mortgage rates are closely related to yields on long-term government bonds.
On May 1, 2013, 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 4.45 percent, the monthly payment for the same size loan would be $1,007.44, a difference of $107 per month for anyone that waited too long.
30-year fixed: 4.45% -- down from 4.48% last week (avg. points: 0.36)
15-year fixed: 3.46% -- down from 3.50% last week (avg. points: 0.24)
5/1 ARM: 3.26% -- down from 3.30% 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. The panelists are divided, with 40 percent expecting mortgage rates to fall in the coming week, and 60 percent predicting mortgage rates will remain more or less unchanged. Interestingly, none of the panelists forecast an increase in mortgage rates in the next week.