Bankrate: Mortgage Rates Slide
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Fixed mortgage rates pulled back this week, with the average conforming 30-year fixed mortgage rate dropping to 6.02 percent. According to Bankrate.com’s weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.44 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing fell to 5.63 percent, while the average jumbo 30-year fixed rate is at 7.29 percent. Adjustable mortgage rates got in on the act too, with the average 5/1 ARM retreating to 5.71 percent and the average 7/1 ARM backpedaling to 5.99 percent.
Weak economic data helped push mortgage rates lower. Concerns about economic growth and worries about building inflation pressures are playing tug-of-war with mortgage rates. Oil prices play a dual role by contributing to higher prices on both the headline and core levels while representing a drag on economic growth. Fixed mortgage rates are closely related to yields on long-term government bonds, and both are heavily influenced by the outlook for the economy and inflation.
Mortgage rates have been on a wild ride since the beginning of the year. The average 30-year fixed mortgage rate was as low as 5.57 percent in January, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38. In February, the average 30-year fixed rate got as high as 6.41 percent, which meant the same $200,000 loan would have carried a monthly payment of $1,252.32. Today, with the average rate at 6.02 percent, a $200,000 loan would mean a monthly payment of $1,201.67.
SURVEY RESULTS
30-year fixed: 6.02% — down from 6.19% last week (avg. points: 0.44)
15-year fixed: 5.63% — down from 5.78% last week (avg. points: 0.37)
5/1 ARM: 5.71% — down from 5.86% last week (avg. points: 0.42)
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. There is no clear consensus this week, with 40 percent of panelists predicting rates will rebound and 33 percent expecting rates to remain more or less unchanged in the coming 30 to 45 days. Just 27 percent forecast a further decline in the weeks ahead.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc. (NASDAQ:RATE)
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure and InsureMe. Each of these businesses helps consumers to 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 2007, Bankrate.com had nearly 60 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (NASDAQ:YHOO) , America Online (NYSE:TWX) , The Wall Street Journal and The New York Times (NYSE:NYT) . Bankrate.com’s information is also distributed through more than 500 newspapers.
Source: Bankrate, Inc.
Web site: http://www.bankrate.com/
