NEW YORK, June 30, 2016 /PRNewswire/ -- Mortgage rates fell to a fresh 3-year low following the Brexit vote, with the benchmark 30-year fixed mortgage rate sinking to 3.61 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.24 discount and origination points.
The larger jumbo 30-year fixed didn't fall as far, to 3.67 percent, and is higher than the average conforming rate for just the fourth time in the past year. The average 15-year fixed mortgage rate dropped to a 3-year low as well, 2.89 percent. Adjustable mortgage rates were down more modestly but enough to reach 3-year lows as well, with the 5-year ARM retreating to 3.01 percent and the 7-year ARM settling at 3.22 percent.
Mortgage shoppers are one of the beneficiaries of the recent market upheaval over the Brexit vote. The stock market staged a relief rally in the days ahead of the Brexit vote in anticipation of a 'Stay' vote, so the 'Leave' outcome threw global markets into a tailspin. If there is one thing investors hate it is uncertainty and there is plenty of that, which only enhances the lure of safe haven U.S. Treasuries. Mortgage rates are closely related to the yields on long-term Treasuries. The uncertainty about the global economy is even higher now, so bond yields and mortgage rates are lower. With that landscape unlikely to change this will help to keep mortgage rates at attractive levels for the foreseeable future.
At the current average 30-year fixed mortgage rate of 3.61 percent, the monthly payment for a $200,000 loan is $910.41.
30-year fixed: 3.61% -- down from 3.73% last week (avg. points: 0.24)
15-year fixed: 2.89% -- down from 2.97% last week (avg. points: 0.19)
5/1 ARM: 3.01% -- down from 3.06% last week (avg. points: 0.25)
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-063016.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. There is no clear consensus with 46 percent predicting that mortgage rates will remain more or less unchanged and 36 percent forecasting a decline in the coming week. Very few panelists expect a rebound in rates with just 18 percent forecasting an increase over the next seven days.
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.
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