Mortgage rates hit new record lows last week with the benchmark 30-year fixed mortgage rate dropping to 3.50 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.40 discount and origination points.
The average 15-year fixed mortgage rate slipped to 2.84 percent and the larger jumbo 30-year mortgage inched lower to 3.98 percent, resetting a record low for the 6th week in a row. The 3-year ARM dipped to 2.84 percent and the popular 5-year ARM remained unchanged at 2.74 percent.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed 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 3.50 percent, the monthly payment for the same size loan would be $898.09, a difference of $344 per month for anyone refinancing now.
30-year fixed: 3.50 percent — down from 3.52 percent the previous week (avg. points: 0.40)
15-year fixed: 2.85 percent — down from 2.86 the previous week (avg. points: 0.27)
5/1 ARM: 2.74 percent — unchanged from the previous week (avg. points: 0.40)
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.