News Markets Media

USA | Europe | Asia | World| Stocks | Commodities

Home News USA Bankrate: Mortgage Rates Pull Back


Bankrate: Mortgage Rates Pull Back
added: 2010-09-17

Mortgage rates moved lower this week, with the average conforming 30-year fixed mortgage rate retreating to 4.54 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

The average 15-year fixed mortgage retreated to 4.00 percent, and the larger jumbo 30-year fixed rate pulled back to 5.19 percent, both record lows. Adjustable rate mortgages were down more significantly, with the average 5-year ARM sliding to 3.78 percent and the average 7-year ARM sinking to 4.04 percent.

A looming Federal Open Market Committee meeting could add more volatility to mortgage rates. Although unlikely at the upcoming meeting, any additional bond purchases by the Fed would be designed to drive long-term interest rates - and mortgage rates - lower. Recent economic reports have been a bit better than expected and remove the urgency for the Fed to take immediate action. Nonetheless, any hint of what the Fed is thinking about either the economy or the need for additional measures, could spark the next big move in 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 4.54 percent, the monthly payment for the same size loan would be $1,018.13, a savings of almost $224 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 4.54% - down from 4.58% last week (avg. points: 0.37)

15-year fixed: 4.00% - down from 4.06% last week (avg. points: 0.34)

5/1 ARM: 3.78% - down from 3.91% last week (avg. points: 0.29)


Source: Bankrate.com

Privacy policy . Copyright . Contact .