NEW YORK, NY - Mortgage rates tie the lowest level of 2017 this week, with the benchmark 30-year fixed mortgage rate now 4.02 percent, last seen June 14th and lowest since November 2016, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.31 discount and origination points.
The larger jumbo 30-year fixed decreased to 4.03 percent, and the average 15-year fixed mortgage rate slipped to 3.23 percent. Adjustable mortgage rates were higher this week, with the 3-year ARM inching up to 3.62 percent, the 5-year ARM climbing to 3.50 percent and the 7-year ARM stepping up to 3.68 percent.
Bond yields and mortgage rates moved lower over the past week as markets were buffeted by political drama in Washington and a terrorist attack in Barcelona. Until recently, markets had been oblivious to political and geopolitical issues, instead moving higher on the basis of strong corporate earnings, an improving economy and still low interest rates. But beginning with North Korea tensions and now with more recent events, markets are no longer immune - or are just no longer ignoring - the drama in Washington and other events around the globe. High stock market valuations are increasingly prompting investors to move into safe haven government bonds at the first sign of trouble. Mortgage rates are closely related to yields on long-term government bonds.
At the current average 30-year fixed mortgage rate of 4.05 percent, the monthly payment for a $200,000 loan is $957.14.
SURVEY RESULTS
30-year fixed: 4.02% -- down from 4.05% last week (avg. points: 0.31)
15-year fixed: 3.23% -- down from 3.27% last week (avg. points: 0.25)
5/1 ARM: 3.50% -- up from 3.49% last week (avg. points: 0.35)
Bankrate's national weekly mortgage survey is conducted every 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. More than half of the panelists, 54 percent, expect mortgage rates to remain more or less unchanged, while 31 percent forecast an increase in rates. Just 15 percent predict a decline in mortgage rates over the next week.