NEW YORK, NY - Mortgage rates were down for a third consecutive week, with the benchmark 30-year fixed mortgage rate falling to 4.18 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.26 discount and origination points.
The average 15-year fixed mortgage rate dropped to 3.37 percent, while the larger jumbo 30-year fixed mortgage rate sank to 4.21 percent. Adjustable rate mortgages were also lower, with the 3-year ARM stepping down to 3.16 percent and the 5-year ARM retreating to 3.27 percent.
Continued nervousness about slower growth in the global economy proved to be good news for mortgage rates, with mortgage rates pulling back to the lowest level since June 2013. This also takes mortgage rates out of the narrow band of approximately one-tenth of a percentage point that had prevailed since mid-May. The economic sluggishness seen around the globe, Europe in particular, has brought mortgage rates lower this year despite the Federal Reserve tapering their bond purchases.
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 4.18 percent, the monthly payment for the same size loan would be $975.70, a savings of $60 per month for anyone that waited.
SURVEY RESULTS
30-year fixed: 4.18% -- down from 4.27% last week (avg. points: 0.26)
15-year fixed: 3.37% -- down from 3.44% last week (avg. points: 0.15)
5/1 ARM: 3.27% -- down from 3.29% last week (avg. points: 0.11)
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 were somewhat divided, with 55 percent expecting mortgage rates to remain more or less unchanged at these low levels while 45 percent predict further declines in mortgage rates in the coming week. Interestingly, none of the respondents predicted an increase in mortgage rates over the next seven days.