NEW YORK, Oct. 7 /PRNewswire/ -- Mortgage rates fell to record lows again this week, with the average conforming 30-year fixed mortgage rate now 4.45 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.32 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 3.87 percent, and the larger jumbo 30-year fixed rate fell to 5.14 percent. Adjustable rate mortgages also hit new lows, with the average 5-year ARM decreasing to 3.64 percent and the average 7-year ARM falling to 3.88 percent.
Mortgage rates set yet another record low in anticipation that more efforts from the Federal Reserve - known as quantitative easing - are on the way in an effort to juice the economic recovery. Investors expecting lower interest rates to result have been front-running the Fed by purchasing government- and mortgage-backed bonds, driving yields lower. Mortgage rates are dictated by yields on government- and mortgage-backed debt.
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 at 4.45 percent, the monthly payment for the same size loan would be $1,007.44, a savings of $234 per month for a homeowner refinancing now.
30-year fixed: 4.45% -- down from 4.5% last week (avg. points: 0.32)
15-year fixed: 3.87% -- down from 3.94% last week (avg. points: 0.30)
5/1 ARM: 3.64% -- down from 3.68% last week (avg. points: 0.36)
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. There is no clear consensus this week, with 38 percent of panelists predicting mortgage rates will continue to rise. The remaining respondents are evenly divided, with 31 percent forecasting a decline and an equal 31 percent expecting mortgage rates to stay more or less unchanged over the next 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, Savingforcollege.com, Fee Disclosure, 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.
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SOURCE Bankrate, Inc.