NEW YORK, NY - After increasing for three consecutive weeks, mortgage rates pulled back slightly, with the benchmark 30-year fixed mortgage rate sliding to 4.30 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.25 discount and origination points.
The average 15-year fixed mortgage rate held steady at 3.46 percent, while the larger jumbo 30-year fixed mortgage rate sank to 4.31 percent. Adjustable rate mortgages were also lower, with the 3-year ARM stepping down to 3.22 percent and the 5-year ARM retreating to 3.32 percent.
Some nervousness about the global economy proved to be good news for mortgage rates, with mortgage rates pulling back after posting increases for three consecutive weeks. Mortgage rates remain comfortably within the narrow band of approximately one-tenth of a percentage point seen since mid-May. Despite the Federal Reserve tapering their bond purchases, the stimulus efforts and sluggish economies seen around the globe, Europe in particular, have kept a lid on mortgage rates in 2014.
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 4.30 percent, the monthly payment for the same size loan would be $989.74, a savings of $46 per month for anyone that waited.
30-year fixed: 4.30% -- down from 4.33% last week (avg. points: 0.25)
15-year fixed: 3.46% -- unchanged from last week (avg. points: 0.14)
5/1 ARM: 3.32% -- down from 3.35% last week (avg. points: 0.14)
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 don't foresee much change in the coming week, with two-thirds predicting mortgage rates will remain more or less unchanged. Just one-quarter expect an increase in mortgage rates while only 8 percent forecast further declines in the next seven days.