Mortgage Rates Pull Back to 5-Week Lows

Fixed mortgage rates retreated, with the benchmark 30-year fixed mortgage rate falling to 3.73% this week, according to a Bankrate.com national survey.

The average 30-year fixed mortgage has an average of 0.33 discount and origination points.

The average 15-year fixed mortgage rate slipped below the 3% mark, to 2.96%, while the larger jumbo 30-year fixed mortgage rate plunged to 4.1%.

Adjustable rate mortgages were also lower, with the 3-year ARM inching down to 3% and the 5-year ARM sinking to 2.68%.

Mortgage rates declined following renewed concerns about the global economy and Federal Reserve Chairman Ben Bernanke’s reassurances that stimulative bond-buying will continue. Mortgage rates had moved modestly higher in recent weeks on worries that the Fed would prematurely curtail their purchases of long-term bonds, but Bernanke cast those notions aside. Mortgage rates are closely related to yields on long-term government bonds.

The last time mortgage rates were above 5% was Apr. 2011. At the time, the average 30-year fixed rate was 5.07%, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate now 3.73%, the monthly payment for the same size loan would be $923.96, a difference of $158 per month for anyone refinancing now.

Other survey results include:
30-year fixed: 3.73% — down from 3.80% last week (avg. points: 0.33)
15-year fixed: 2.96% — down from 3.02% last week (avg. points: 0.32)
5/1 ARM: 2.68% — down from 2.76% last week (avg. points: 0.32)

Source: Bankrate.com

Article written for HouseLogic and the National Association of Realtors: Mortgage Rates Pull Back to 5-Week Lows

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