NEW YORK, NY - Mortgage rates were little changed this week, extending the recent trend. The benchmark 30-year fixed mortgage rate held at 4.28 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.
The average 15-year fixed mortgage rate ticked lower to 3.40 percent, while the larger jumbo 30-year fixed mortgage rate increased to 4.39 percent. Adjustable rate mortgages were slightly higher, with the 3-year ARM rising to 3.25 percent and the 5-year ARM inching up to 3.38 percent.
Mortgage rates continue to hover, showing very little movement one way or another. The benchmark 30-year fixed mortgage rates has fluctuated within a very narrow range -- one-tenth of a percentage point – since mid-May as investors come to grips with the idea the Federal Reserve will hold interest rates steady into 2015. But as history has shown, these prolonged periods of stability in bond yields and mortgage rates often end suddenly, with a significant bout of volatility. Mortgage rates are closely related to yields on long-term government debt.
As 2013 came to a close, the average 30-year fixed mortgage rate was 4.69 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,036.07. Mortgage rates have moved lower thus far in 2014, and with the average rate now 4.28 percent, the monthly payment for the same size loan would be $987.40, a savings of $48 per month for anyone that waited.
30-year fixed: 4.28% -- unchanged from last week (avg. points: 0.29)
15-year fixed: 3.40% -- down from 3.41% last week (avg. points: 0.2)
5/1 ARM: 3.38% -- up from 3.37% last week (avg. points: 0.19)
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. According to the panelists, rates aren't headed much of anywhere. A vast majority of the panelists – 82 percent - expect mortgage rates to remain more or less unchanged over the coming week. Just 18 percent predict mortgage rates will rise. Interestingly, none of this week's respondents forecast a decline in mortgage rates over the next seven days.
Source: BankRate.com / #Housing #Economy