NEW YORK, June 17 /PRNewswire/ -- Mortgage rates held at record low levels this week, with the average conforming 30-year fixed mortgage rate at 4.88 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.48 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 inched lower to another record low of 4.32 percent while the larger jumbo 30-year fixed rate declined to 5.70 percent. Adjustable rate mortgages were mixed, with the average 1-year ARM remaining at 4.87 percent while the average 5-year ARM notched higher to 4.19 percent.
Mortgage rates remain at record lows as a byproduct of ongoing uncertainty about the economy and nervousness among investors. A "flight to quality" among global investors has driven Treasury yields significantly lower, and mortgage rates are closely tied to yields on long-term government debt. As long as there is lingering doubt about the sustainability of the U.S. economic recovery, mortgage rates will remain at near present levels.
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 4.88 percent, the monthly payment for the same size loan would be $1,059.02, a savings of $182 per month for a homeowner refinancing now.
30-year fixed: 4.88% -- unchanged from last week (avg. points: 0.48)
15-year fixed: 4.32% -- down from 4.33% last week (avg. points: 0.49)
5/1 ARM: 4.19% -- up from 4.16% last week (avg. points: 0.40)
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 www.bankrate.com/finance/mortgages/mortgage-rates-hold-steady.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. Panelists still say mortgage rates have bottomed, but they may not be headed anywhere right away as 65 percent expect mortgage rates to remain more or less unchanged over the next week. The remaining 35 percent predict an increase in mortgage rates.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/finance/mortgages/rate-trend-index-1.aspx
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.