Bankrate: Mortgage Rates Hit Six-Month Low
NEW YORK, May 25, 2017 /PRNewswire/ -- Mortgage rates continued to fall this week, with the benchmark 30-year fixed mortgage rate sinking to 4.13 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.23 discount and origination points.
The larger jumbo 30-year fixed slid to 4.06 percent, and the average 15-year fixed mortgage rate dropped to 3.32 percent. Adjustable mortgage rates were mostly on the decline as well, with the 5-year ARM holding steady at 3.42 percent and the 7-year ARM dropping to 3.58 percent.
Mortgage rates posted only slight declines this week, but it was enough to set fresh 6-month lows. Geopolitical and terrorism concerns, coupled with the distraction of a White House scandal that threatens to delay any growth-boosting policy initiatives have all kept a lid on mortgage rates. But with the Federal Reserve positioned to raise interest rates further and laying the groundwork for eventually decreasing the size of their balance sheet, there are potential upward pressures on mortgage rates in the months ahead. The Fed continues to pledge 'gradual' action, both with regard to interest rates and normalizing their balance sheet. Further, with the backdrop of still sluggish economic growth, the likelihood of a sudden spike in rates has low odds.
At the current average 30-year fixed mortgage rate of 4.15 percent, the monthly payment for a $200,000 loan is $969.88.
SURVEY RESULTS
30-year fixed: 4.13% -- down from 4.15% last week (avg. points: 0.23)
15-year fixed: 3.32% -- down from 3.35% last week (avg. points: 0.20)
5/1 ARM: 3.42% -- unchanged from 3.42% last week (avg. points: 0.28)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets. For a full analysis of this week's move in mortgage rates, go to
http://www.bankrate.com/finance/mortgages/mortgage-analysis-052417.aspx
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. The majority of the panelists, 60 percent, predict that mortgage rates will stay more or less unchanged over the next week. Only 10 percent of experts see the decline in mortgage rates continuing while 30 percent expect mortgage rates to rise over the next week.
About Bankrate.com:
Bankrate.com provides consumers with the expert advice and tools needed to succeed throughout life's financial journey. For over two decades, Bankrate.com has been a leading personal finance destination. The company offers award-winning editorial content, competitive rate information, and calculators and tools across multiple categories, including mortgages, deposits, credit cards, retirement, automobile loans, and taxes. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to more than 100 cobranded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the internet, such as Comcast, Yahoo!, CNBC and Bloomberg. In addition, Bankrate licenses editorial content to more than 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times and The Los Angeles Times.
For more information:
Kayleen Yates
Vice President, Corporate Communications
[email protected]
(917) 368-8677
SOURCE Bankrate.com
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