NEW YORK, Oct. 14 /PRNewswire/ -- Rates for most mortgage products fell to new lows, but the average rate on the benchmark conforming 30-year fixed mortgage rate inched higher to 4.47 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 3.85 percent, and the larger jumbo 30-year fixed rate retreated to 5.10 percent, both record lows. Adjustable rate mortgages hit new lows also, with the average 5-year ARM declining to 3.62 percent and the average 7-year ARM backpedalling to 3.86 percent.
Mortgage rates were mostly lower this week, for both fixed and adjustable rate loans. While the Federal Reserve is likely to resume a bond purchase program designed to push interest rates lower, don't assume this will automatically translate into lower mortgage rates. Why? For starters, the current foreclosure moratorium mess raises 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 4.47 percent, the monthly payment for the same size loan would be $1,009.81, a savings of $232 per month for a homeowner refinancing now.
30-year fixed: 4.47% -- up from 4.45% last week (avg. points: 0.35)
15-year fixed: 3.85% -- down from 3.87% last week (avg. points: 0.33)
5/1 ARM: 3.62% -- down from 3.64% last week (avg. points: 0.33)
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/mortgage.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. More than half of the panelists, 59 percent, say mortgage rates aren't headed much of anywhere and will remain more or less unchanged. More than one in four respondents, 29 percent, expect mortgage rates to move higher while just 12 percent predict further declines 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 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.