NEW YORK, NY - Mortgage rates pulled back, with the benchmark 30-year fixed mortgage rate sliding to 4.14 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.25 discount and origination points.
The average 15-year fixed mortgage dropped to 3.28 percent, while the larger jumbo 30-year fixed mortgage sank to 4.07 percent. For the second week in a row, and just the third time on record, the average rate for the jumbo 30-year fixed rate mortgage is below that of the conforming 30-year fixed mortgage. Adjustable rate mortgages were down, with the 5-year ARM settling at 3.16 percent, the lowest since late April, and the 7-year ARM descending to 3.42 percent.
In contrast to the past couple weeks when positive economic news pushed mortgage rates higher, this week the Greek debt crisis held sway. Greece's default on payment to the International Monetary Fund, and subsequent voter rejection of further austerity measures, produced a flight to quality that benefits American mortgage borrowers. The demand for the safety of U.S. government debt pushes bond prices higher, and bond yields lower. Mortgage rates are closely related to yields on long-term Treasury notes.
In mid-April, 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 4.14 percent, the monthly payment for the same size loan would be $971.04, a difference of $40 per month for anyone that waited just a bit too long.
30-year fixed: 4.14% -- down from 4.19% last week (avg. points: 0.25)
15-year fixed: 3.28% -- down from 3.34% last week (avg. points: 0.18)
5/1 ARM: 3.16% -- down from 3.25% 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. Half of the panelists predict mortgage rates will continue falling over the coming week while 42 percent expect mortgage rates to remain more or less unchanged. Just 8 percent of respondents forecast a rebound in mortgage rates in the coming week.