RISMEDIA, May 14, 2010—Mortgage rates were down for the third week in a row, with the average conforming 30-year fixed mortgage rate falling to 5.07 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.42 discount and origination points.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/
The average 15-year fixed mortgage stepped down to 4.45 percent and the larger jumbo 30-year fixed rate sank to 5.85 percent. Adjustable rate mortgages were mostly lower, with the average 3-year ARM backpedalling to 4.44 percent while the 5-year ARM dropped to 4.27 percent.
Worries over European debt rattled financial markets and brought mortgage rates to the lowest level since St. Patrick’s Day. Once again mortgage shoppers were direct beneficiaries as nervous investors equate to lower mortgage rates.
Furthermore, this cloud of global economic uncertainty likely gives the Federal Reserve even more latitude to hold the line on interest rates, so mortgage rates will stay a little lower, a little longer, than what was forecast just a few weeks ago.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.07 percent, the monthly payment for the same size loan would be $1,082.22, a savings of $159 per month for a homeowner refinancing now.
30-year fixed: 5.07% — down from 5.12% last week (avg. points: 0.42)
15-year fixed: 4.45% — down from 4.49% last week (avg. points: 0.39)
5/1 ARM: 4.27% — down from 4.31% last week (avg. points: 0.35)
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 a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com/mortgagerates
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. Nearly two-thirds of the panelists, 64 percent, don’t expect much change in mortgage rates and forecast that rates will be more or less unchanged over the next week. Count 29 percent as predicting an increase in mortgage rates, with just 7 percent foreseeing further declines over the next seven days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
For more information about Bankrate, visit www.bankrate.com.