NEW YORK, NY - Mortgage rates fell for a second week in a row, with the benchmark 30-year fixed mortgage rate dropping to 3.80 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 retreated to 3.11 percent while the larger jumbo 30-year fixed mortgage pulled back below the 4 percent mark to 3.95 percent. Adjustable rate mortgages were mostly lower also, with the 5-year ARM sinking to 3.09 percent and the 7-year ARM sliding to 3.31 percent, the lowest since June 2013.
Estimates for global economic growth were trimmed further this week, testament to the ongoing worries gripping financial markets. Those economic concerns, coupled with further declines in oil prices and renewed volatility in the stock market, brought bond yields and mortgage rates lower. Mortgage rates are closely related to yields on long-term government bonds. Fixed mortgage rates remain the lowest since May 2013.
One year ago, the average 30-year fixed mortgage rate was 4.57 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,021.71. With the average rate now at 3.80 percent, the monthly payment for the same size loan would be $931.94, a savings of approximately $90 per month for anyone refinancing now.
30-year fixed: 3.80% -- down from 3.85% last week (avg. points: 0.27)
15-year fixed: 3.11% -- down from 3.16% last week (avg. points: 0.18)
5/1 ARM: 3.09% -- down from 3.20% 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. Nearly two-thirds of the panelists, 64 percent, expect mortgage rates to continue falling. Twenty-nine percent predict that mortgage rates will remain more or less unchanged, while just 7 percent forecast a rebound in mortgage rates over the coming week.