NEW YORK, Sept. 22, 2011 /PRNewswire/ -- The benchmark conforming 30-year fixed mortgage rate set a new record for the fifth consecutive week, dropping to 4.29 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.41 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 retreated further to 3.42 percent while the larger jumbo 30-year fixed rate inched higher to 4.85 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM slipping to 3.05 percent and the 10-year ARM sliding to 3.72 percent, both record lows.
The streak of record low mortgage rates looks to continue. The Federal Reserve has taken direct aim at mortgage rates, announcing plans to shift $400 billion from short-term holdings into long-term government bonds, and by reinvesting principal payments on some bonds into mortgage-backed securities. In doing so, the Fed aims to push mortgage rates still lower and keep them there over the next six to nine months. However, in order to get the most economic impact out of low mortgage rates, the pool of prospective refinancers needs to be expanded. Deeply upside-down homeowners, those with second liens or mortgage insurance, and lender concerns about buyback liability are all formidable impediments to refinancing.
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 4.29 percent, the monthly payment for the same size loan would be $988.57, a difference of $253 per month for anyone refinancing now.
30-year fixed: 4.29% -- down from 4.32% last week (avg. points: 0.41)
15-year fixed: 3.42% -- down from 3.44% last week (avg. points: 0.31)
5/1 ARM: 3.05% -- down from 3.07% 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.
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, the majority of the panelists - 62 percent – predict mortgage rates will decline further. One-in-four, 25 percent, expect mortgage rates to remain more or less unchanged, while just 13 percent forecast an increase in the upcoming week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.
About Bankrate, Inc. (NYSE: RATE)
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.
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SOURCE Bankrate, Inc.