NEW YORK, NY - Mortgage rates were mixed, with the benchmark 30-year fixed mortgage rate reversing last week's move and settling at 3.80 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.29 discount and origination points.
The average 15-year fixed mortgage dropped to 3.13 percent while the larger jumbo 30-year fixed mortgage nosed higher to 4.02 percent. Adjustable rate mortgages were mostly higher, with the 7-year ARM climbing to 3.37 percent and the 10-year ARM rising to 3.65 percent.
Mortgage rates remain at the lowest levels since May 2013, despite an improving U.S. economy. The economic sluggishness overseas and increased stimulus from other central banks around the globe have kept the Federal Reserve 'patient' about raising interest rates and helped bring both bond yields and mortgage rates lower. Mortgage rates are closely related to yields on long-term government bonds.
One year ago, the average 30-year fixed mortgage rate was 4.50 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,013.37. With the average rate now at 3.80 percent, the monthly payment for the same size loan would be $931.91, a savings of approximately $81 per month for anyone refinancing now.
30-year fixed: 3.80% -- down from 3.81% last week (avg. points: 0.29)
15-year fixed: 3.13% -- down from 3.18% last week (avg. points: 0.17)
5/1 ARM: 3.19% -- unchanged from last week (avg. points: 0.20)
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 are evenly split this week, with 42 percent forecasting a decrease in mortgage rates and an equal 42 percent expecting mortgage rates to remain more or less unchanged. Just 16 percent predict an increase in mortgage rates over the coming week.