NEW YORK, NY - Mortgage rates continued to fall this week, with the benchmark 30-year fixed mortgage rate sinking to 4.13 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.23 discount and origination points.
The larger jumbo 30-year fixed slid to 4.06 percent, and the average 15-year fixed mortgage rate dropped to 3.32 percent. Adjustable mortgage rates were mostly on the decline as well, with the 5-year ARM holding steady at 3.42 percent and the 7-year ARM dropping to 3.58 percent.
Mortgage rates posted only slight declines this week, but it was enough to set fresh 6-month lows. Geopolitical and terrorism concerns, coupled with the distraction of a White House scandal that threatens to delay any growth-boosting policy initiatives have all kept a lid on mortgage rates. But with the Federal Reserve positioned to raise interest rates further and laying the groundwork for eventually decreasing the size of their balance sheet, there are potential upward pressures on mortgage rates in the months ahead. The Fed continues to pledge 'gradual' action, both with regard to interest rates and normalizing their balance sheet. Further, with the backdrop of still sluggish economic growth, the likelihood of a sudden spike in rates has low odds.
At the current average 30-year fixed mortgage rate of 4.15 percent, the monthly payment for a $200,000 loan is $969.88.
30-year fixed: 4.13% -- down from 4.15% last week (avg. points: 0.23)
15-year fixed: 3.32% -- down from 3.35% last week (avg. points: 0.20)
5/1 ARM: 3.42% -- unchanged from 3.42% last week (avg. points: 0.28)
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. The majority of the panelists, 60 percent, predict that mortgage rates will stay more or less unchanged over the next week. Only 10 percent of experts see the decline in mortgage rates continuing while 30 percent expect mortgage rates to rise over the next week.