Mortgage rates continue to fall amid disappointing economic news this week. The benchmark conforming 30-year fixed mortgage rate is now 4.65%, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.39 discount and origination points.
The average 15-year fixed mortgage hit a new record low of 3.79% but the larger jumbo 30-year fixed rate ticked up to 5.19%.
Adjustable rate mortgages moved lower, with both the average 5-year ARM and 7-year ARM resetting record lows of 3.35% and 3.54%, respectively.
A disappointing employment report was the key catalyst for lower mortgage rates this week. The latest declines come on the heels of a string of weak economic results that have brought yields on ten-year Treasury notes below 3%, and pulled mortgage rates lower for nine consecutive weeks. Mortgage rates are closely related to yields on long-term government debt. Fixed mortgage rates are at the lowest levels since last Thanksgiving and most adjustable rate mortgages have established new record lows.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.65%, the monthly payment for the same size loan would be $1,031.27, a difference of $210 per month for anyone refinancing now.
SOURCE Bankrate, Inc.