NEW YORK, Oct. 21 /PRNewswire/ -- Mortgage rates hit another record low this week, with the average rate on the benchmark conforming 30-year fixed mortgage rate retreating to 4.42 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.35 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 slipped to 3.82 percent, and the larger jumbo 30-year fixed rate dipped to 5.08 percent, both record lows. Adjustable rate mortgages hit new lows also, with the average 5-year ARM declining to 3.6 percent and the average 7-year ARM inching down to 3.85 percent.
Mortgage rates moved slightly lower this week, but it was enough to set yet another record low for fixed rate mortgages and for many adjustable rate loans also. While the Federal Reserve is poised to resume a bond purchase program designed to push interest rates lower, don't assume this will automatically translate into lower mortgage rates. Why? Such an announcement is widely expected and much of its intended impact may already be reflected in government bond yields and mortgage rates. Mortgage rates are closely related to yields on long-term government debt. Also, the ongoing foreclosure controversy is sure to raise both the cost and the amount of time involved in foreclosure, factors that could ultimately be passed along to future borrowers through higher mortgage rates.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average 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 4.42 percent, the monthly payment for the same size loan would be $1,003.89, a savings of almost $238 per month for a homeowner refinancing now.
30-year fixed: 4.42% -- down from 4.47% last week (avg. points: 0.35)
15-year fixed: 3.82% -- down from 3.85% last week (avg. points: 0.30)
5/1 ARM: 3.60% -- down from 3.62% 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. Half of the panelists, 50 percent, say mortgage rates aren't headed much of anywhere and will remain more or less unchanged. One-third of respondents, 33 percent, expect mortgage rates to move higher while the remaining 17 percent predict further declines over the next week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com
About Bankrate, Inc.
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe CreditCardGuide.com and Bankaholic. 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.
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SOURCE Bankrate, Inc.