NEW YORK, June 10 /PRNewswire/ -- Mortgage rates hit another record low 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 0.5 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 dropped slightly to 4.33 percent while the larger jumbo 30-year fixed rate inched lower to 5.72 percent. Adjustable rate mortgages also slid back with the average 1-year ARM dropping to 4.87 percent and the average 5-year ARM backpedaled to 4.16 percent.
Fixed mortgage rates hit yet another new low this week following last Friday's disappointing employment report. Weak growth in private sector payrolls - just 41,000 new jobs in May - called into question the overall strength and sustainability of the U.S. economic recovery. Nervous investors again piled into the safe haven of U.S. Treasury notes, which helped bring mortgage rates to previously unseen levels. Weak hiring will further postpone the timeframe when the Federal Reserve begins boosting short-term interest rates, which is also helping keep mortgage rates low.
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, according to Bankrate.com's Mortgage Payment Calculator.
30-year fixed: 4.88% -- down from 4.95% last week (avg. points: 0.5)
15-year fixed: 4.33% -- down from 4.36% last week (avg. points: 0.45)
5/1 ARM: 4.16% -- down from 4.21% last week (avg. points: 0.41)
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/mortgagerates
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. In this week's Rate Trend Index, 56 percent of the panelists predict mortgage rates will remain relatively unchanged (plus or minus 2 basis points) over the next week or so; 44 percent think rates will rise; and nobody says rates will fall.
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.