NEW YORK, May 5, 2016 /PRNewswire/ -- Mortgage rates avoided a third straight increase, with the benchmark 30-year fixed mortgage rate sliding to 3.77 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.20 discount and origination points.
The larger jumbo 30-year fixed held steady at 3.76 percent, while the average 15-year fixed mortgage pulled back to 3.01 percent. Adjustable mortgage rates were also lower, with the 5-year ARM and 7-year ARM each reversing course to 3.14 percent and 3.37 percent, respectively.
After moving higher in each of the two preceding weeks, mortgage rates retraced some of that ground. The pullback in mortgage rates began in immediate response to last week's Federal Open Market Committee meeting where the Fed was tight-lipped about interest rate intentions. That, coupled with some evidence of weakness in the U.S. economy – such as the 0.5 percent growth rate in the first quarter – kept mortgage rates on the downswing over the past week. The opposite can also happen though, if a strong jobs report heats up talk of a summer rate hike by the Fed, both bond yields and mortgage rates would trend higher in coming weeks. Mortgage rates are closely related to the yields on long-term government bonds.
At the current average 30-year fixed mortgage rate of 3.77 percent, the monthly payment for a $200,000 loan is $928.50.
SURVEY RESULTS
30-year fixed: 3.77% -- down from 3.83% last week (avg. points: 0.20)
15-year fixed: 3.01% -- down from 3.05% last week (avg. points: 0.16)
5/1 ARM: 3.14% -- down from 3.21% last week (avg. points: 0.21)
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-050516.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. Half of the panelists predict mortgage rates to continue falling, while one-third expect mortgage rates to remain more or less unchanged in the coming week. Just 17 percent forecast a rebound in mortgage rates in the next seven days.
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 contact:
Kayleen Yates
Vice President, Corporate Communications
[email protected]
(917) 368-8677
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SOURCE Bankrate.com
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