NEW YORK, NY - Mortgage rates were down slightly, with the benchmark 30-year fixed mortgage rate slipping to 4.13 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.24 discount and origination points.
The average 15-year fixed mortgage slid to 3.35 percent, while the larger jumbo 30-year fixed mortgage retreated to 4.14 percent. Adjustable rate mortgages were lower as well, with the 5-year ARM down to 3.22 percent, and the 7-year ARM settling at 3.45 percent.
After a notable run-up since late April, mortgage rates took a breather this week, with both fixed and adjustable mortgage rates easing slightly. The Federal Open Market Committee, while acknowledging the likelihood of an initial interest rate hike later this year, did emphasize that further economic improvement still needs to be seen and that the trajectory of interest rates will be gradual. This has calmed the nerves of bond investors, causing both bond yields and mortgage rates to settle after a period volatility. Mortgage rates are closely related to yields on long-term government bonds, which fluctuate based on the outlook for the economy, interest rates, and inflation. Mortgage rates are still one-third of a percentage point higher than they were just eight weeks ago, when mortgage rates were at the lowest level in nearly two years.
Eight weeks ago mortgage rates were at the lowest point in nearly two years when the average 30-year fixed mortgage rate was 3.79 percent. At that time, a $200,000 loan would have carried a monthly payment of $930.78. With the average rate now at 4.13 percent, the monthly payment for the same size loan would be $969.88, a difference of $39 per month for anyone that waited just a bit too long.
30-year fixed: 4.13% -- down from 4.15% last week (avg. points: 0.24)
15-year fixed: 3.35% -- down from 3.39% last week (avg. points: 0.19)
5/1 ARM: 3.22% -- down from 3.24% 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 10 top 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. There is no clear consensus this week, with 45 percent of the panelists forecasting that mortgage rates will move higher, and 33 percent expecting mortgage rates to remain more or less unchanged. Just 22 percent predict that mortgage rates will continue to decline over the coming week.