Mortgage Rates Drift Lower for 2nd Consecutive Week According to Survey

Mortgage Rates Drift Lower for 2nd Consecutive Week According to Survey

NEW YORK, NY - Mortgage rates were down slightly over the past week, with the benchmark 30-year fixed mortgage rate drifting lower to 4.10 percent, according to's weekly national survey. The 30-year fixed mortgage has an average of 0.27 discount and origination points.

The average 15-year fixed mortgage rate dipped to 3.30 percent and the larger jumbo 30-year fixed mortgage rate settled at 4.13 percent. Adjustable rate mortgages were mixed, with the 5-year ARM inching down to 3.21 percent and the 7-year ARM rising to 3.53 percent.       

While economic data has been largely positive, the same cannot be said in other parts of the world. Japan is now in another recession, and Europe is certainly flirting with both a recession and deflation. With the Japanese and European central banks both cranking up the printing presses in order to drive down interest rates and stimulate their economies, U.S. government bond yields appear significantly higher by comparison. As a result, demand among global investors for the safety of U.S. Treasuries remains high, bringing yields lower. Mortgage rates are closely related to yields on long-term government bonds.

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 4.10 percent, the monthly payment for the same size loan would be $966.40, a savings of almost $70 per month for anyone that waited.


30-year fixed: 4.10% -- down from 4.13% last week (avg. points: 0.27)

15-year fixed: 3.30% -- down from 3.32% last week (avg. points: 0.16)

5/1 ARM: 3.21% -- down from 3.22% last week (avg. points: 0.17)

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

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 majority of panelists don't see much change in mortgage rates over the coming week, with 69 percent expecting mortgage rates to remain more or less unchanged. The remaining 31 percent forecast an increase in mortgage rates over the next seven days. Interestingly, none of this week's respondents predict a decline in mortgage rates.

Source: / #Housing #Economy

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