Mortgage rates fell yet again this week. The average 30-year fixed mortgage rate dipped to a record-low 3.52 percent, according to Bankrate.com’s (NYSE: RATE) weekly national survey. The average 30-year fixed mortgage has an average of 0.44 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 rate dropped to a record-low 2.84 percent while the jumbo 30-year fixed mortgage sank to another record of 4.16 percent. Adjustable mortgage rates fell to record lows, too, with the 5-year ARM slipping to 2.67 percent and the 7-year ARM to 2.82 percent on average.
The historically low rates led to a surge in refinances last week. As the Federal Reserve continues its plans to purchase $40 billion worth of mortgage bonds per month, it is unlikely that mortgage rates will spike anytime soon. The September employment report, which will be released Friday by the Labor Department, will help keep rates low if it signals the economy is still struggling and disappoints the market.
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 3.52 percent, the monthly payment for the same size loan would be $900.32, a difference of $341.54 per month for anyone refinancing now.
30-year fixed: 3.52% — down from 3.55% last week (avg. points: 0.44)
15-year fixed: 2.84% — down from 2.88% last week (avg. points: 0.29)
5/1 ARM: 2.67% — down from 2.68% last 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/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. The majority of the panelists, 58 percent, see little change in mortgage rates over the next seven days. Twenty-five percent expect a decrease in the coming week and 17 percent predict an increase.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc.
Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, our flagship website, and other owned and operated personal finance websites, including CreditCards.com, Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, Nationwide Card Services, InsuranceQuotes.com, CarInsuranceQuotes.com, InsureMe, Bankrate.com.cn, CreditCards.ca, NetQuote.com, and CD.com.Â Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of nearly 600 local markets in all 50 U.S. states, Bankrate generates over 172,000 distinct rate tables capturing on average over three million pieces of information daily.Â Bankrate develops and provides web services to over 80 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.
SOURCE Bankrate, Inc.