Bankrate: Mortgage Rates Reverse Course
- Mortgage rates pulled back sharply this week, with the average 30-year fixed mortgage rate falling to 5.76 percent. According to Bankrate.com's weekly national survey, the average 30-year fixed mortgage has an average of 0.43 discount and origination points.
The average 15-year fixed rate mortgage sank to 5.19 percent, while the average jumbo 30-year fixed rate inched higher to 6.97 percent. Adjustable rate mortgages were mixed, with the average 3-year ARM rising to 5.38 percent and the 5-year ARM dropping to 5.37 percent.
Mortgage rates retreated after a hefty run-up that had 30-year fixed mortgage rates flirting with the 6 percent mark. The concerns about eventual inflation that drove bond yields and mortgage rates higher have been tempered by the reality of continued weakness in the economy. Given the long road ahead economically, investors saw value in fixed income instruments like government bonds and mortgage-backed debt after rates had spiked upward. This helped bring mortgage rates back down and re-open the door to refinancing for homeowners that thought it had closed just a couple weeks ago. Mortgage rates are closely related to yields on long-term government debt.
Mortgage rates, though higher than in recent months, are significantly lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.62 percent, meaning a $200,000 loan would have carried a monthly payment of $1,279.96. With the average rate now 5.76 percent, the monthly payment for the same size loan would be $1,168.42, a savings of $111 per month for a homeowner refinancing now.
30-year fixed: 5.76% -- down from 5.95% last week (avg. points: 0.43)
15-year fixed: 5.19% -- down from 5.37% last week (avg. points: 0.37)
5/1 ARM: 5.37% -- down from 5.49% last week (avg. points: 0.4)
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 forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. The consensus this week, according to 53 percent of the panelists, is that rates will continue to decline. Only 20 percent expect a rebound in rates and 27 percent expect mortgage rates to remain more or less unchanged over the next 30 to 45 days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc.
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic.com. Each of these businesses helps consumers make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2008, Bankrate.com had nearly 72 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (NASDAQ:YHOO) (NASDAQ:-) (NASDAQ:News) , America Online (NYSE:TWX) (NYSE:-) (NYSE:News) , The Wall Street Journal and The New York Times (NYSE:NYT -) (NYSE:News) . Bankrate.com's information is also distributed through more than 500 newspapers.
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