NEW YORK, NY - Mortgage rates continued the downward movement for a fourth consecutive week, with the benchmark 30-year fixed mortgage rate now 4.07 percent, according to Bankrate.com'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 held steady at 3.29 percent while the larger jumbo 30-year fixed mortgage retreated to 4.12 percent. Adjustable rate mortgages were mixed, with the 5-year ARM nosing higher to 3.20 percent and the 7-year ARM sliding to 3.48 percent.
Despite consistently positive data on the U.S. economy, mortgage rates have been very calm, posting a minor decrease over the past four weeks. The ongoing concerns about the global economy have not only kept a lid on long-term bond yields, but outweighed the positive news by just enough to push both bond yields and mortgage rates slightly lower. Mortgage rates are closely related to yields on long-term government bonds. Even the upcoming employment report may not be enough to overshadow worries about economies overseas.
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. Nearly one year later, with the average rate now 4.07 percent, the monthly payment for the same size loan would be $962.92, a savings of $73 per month for anyone that waited.
30-year fixed: 4.07% -- down from 4.08% last week (avg. points: 0.27)
15-year fixed: 3.29% -- unchanged from last week (avg. points: 0.17)
5/1 ARM: 3.20% -- up from 3.19% last week (avg. points: 0.22)
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 majority of panelists don't see much change in mortgage rates over the coming week, with 64 percent expecting mortgage rates to remain more or less unchanged. Twenty-seven percent of the panelists forecast a decrease in mortgage rates over the next seven days, while just 9 percent predict a rebound in mortgage rates.