Welcome!




Expand Your Education with These Courses from
Customer Relationship Building: Skills for Sales Success: Part Seven.
Becoming a Successful Sales Professional: Skills for Sales Success: Part One.
A Consumer Advocate Approach to Real Estate & Mortgages: Courses 1 & 2.
ACE: Purchase Reverse Mortgage Course.
BPOs: The Agent’s Role in the Valuation Process.

Bankrate: Mortgage Rates Down for Second Week in a Row

Have a comment on this article? Share on Facebook!

RISMEDIA, August 3, 2007—Mortgage rates were mostly lower, with the average 30-year fixed mortgage rate now 6.71 percent. According to Bankrate.com’s weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.27 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing pulled back to 6.38 percent. On larger loans, the average jumbo 30-year fixed rate jumped to 7.13 percent. Adjustable rate mortgages were lower, with the average 5/1 ARM sinking to 6.36 percent and the average one-year ARM
retreating to 5.95 percent.

Mortgage rates declined this week – for the most part. Even though the average 30-year fixed rate declined to 6.71 percent, the rate on larger loans increased. The average rate for jumbo 30-year loans – those larger than $417,000 – moved up to 7.13 percent reflecting the increased nervousness of investors about mortgage borrowers’ creditworthiness. What results is a bigger mark-up over risk-free Treasury securities for larger loans that investors buy without the benefit of any loan guarantees. The
increasing spread over government bond yields for all mortgage products is symptomatic of investors’ greater risk aversion.

Fixed mortgage rates are nearly one-half percentage point higher than three months ago. At the time, the average 30-year fixed mortgage rate was 6.28 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,235.34. With the average 30-year fixed rate now 6.71 percent, the same loan originated today would carry a monthly payment of $1,291.88. Fixed mortgage rates still remain the better refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.

SURVEY RESULTS

30-year fixed: 6.71% — down from 6.75% last week (avg. points: 0.27)

15-year fixed: 6.38% — down from 6.42% last week (avg. points: 0.27)

5/1 ARM: 6.36% — down from 6.41% last week (avg. points: 0.22)

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 more information, visit www.bankrate.com/mortgagerates.

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com