NEW YORK, N.Y. – June 2, 2011 – (RealEstateRama) — Mortgage rates fell for an eighth consecutive week, with the benchmark conforming 30-year fixed mortgage rate falling to 4.69 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.39 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 dropped to 3.88 percent and the larger jumbo 30-year fixed rate retreated to 5.16 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM resetting a record low of 3.39 percent and the 7-year ARM plunging to 3.64 percent, also a new low.
More weak economic data is increasing evidence that a summer soft patch has arrived – again. The loss of momentum means an even more sluggish recovery than was expected and that interest rates won’t be rising any time soon. This has been very beneficial to mortgage rates, both the fixed and adjustable rate varieties. Adjustable mortgage rates, such as the 5/1 and 7/1 ARMs, have moved to record lows. Fixed mortgage rates are at the lowest levels since last Thanksgiving. For many would-be refinancers, the turkey is indeed on the table with the opportunity to refinance at sub-5 percent rates. But with lower federal loan limits scheduled to take effect in October, waiting too long could mean missing the chance to lock in historically low fixed rates if the loan amount becomes ineligible for government guarantees.
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 4.69 percent, the monthly payment for the same size loan would be $1,036.07, a difference of $205 per month for anyone refinancing now.
30-year fixed: 4.69% — down from 4.75% last week (avg. points: 0.39)
15-year fixed: 3.88% — down from 3.93% last week (avg. points: 0.37)
5/1 ARM: 3.39% — down from 3.45% last week (avg. points: 0.37)
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.
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. This week, 53 percent of the panelists expect mortgage rates to remain more or less unchanged, while 40 percent forecast even lower rates. Just 7 percent predict mortgage rates to rise in the coming week.
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, InsureMe CreditCardGuide.com, Bankaholic, CreditCards.com and NetQuote. 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. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: AOL), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com’s information is also distributed through more than 500 newspapers. Bankrate, Inc. was acquired by Apax Partners, one of the world’s leading private equity investment groups, in September 2009. Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience. For more information on Apax, visit: www.Apax.com.