|Bankrate: Mortgage Rates Hit New Record Lows|
NEW YORK, July 12, 2012 /PRNewswire via COMTEX/ --Mortgage rates moved lower once again, with the average 30-year fixed mortgage rate setting a new record low of 3.79 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.40 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 rate fell to 3.05 percent, while the jumbo 30-year fixed mortgage ticked lower to 4.44 percent, both record lows. Adjustable mortgage rates were mixed, with the average 3/1 ARM rate inching higher to 3.08 percent while the rate on the popular 5/1 adjustable dipped to a new record low of 2.95 percent.
A disappointing jobs report raised further concerns about the U.S. economy and helped push mortgage rates to the 10th new record low in the past 12 weeks. Between the European debt crisis, and evidence of weaker economic growth both in the U.S. and around the globe, investors have had plenty to worry about. And when investors worry, they gravitate toward secure investments like U.S. government bonds, to which mortgage rates are pegged. The other thing weak economic data does is raise speculation that the Federal Reserve will come riding to the rescue with further bond-buying stimulus, and investors often pour money into U.S. Treasuries in anticipation, hoping to score quick profits by front-running the Fed.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed 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 3.79 percent, the monthly payment for the same size loan would be $930.78, a difference of nearly $311 per month for anyone refinancing now.
30-year fixed: 3.79% -- down from 3.87% last week (avg. points: 0.40)
15-year fixed: 3.05% -- down from 3.13% last week (avg. points: 0.35)
5/1 ARM: 2.95% -- down from 2.96% last week (avg. points: 0.35)
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/.
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. The majority of the panelists predict that mortgage rates will remain unchanged over the next week. The remaining experts are split, with 21 percent forecasting an increase and 29 percent expecting mortgage rates to be even lower in the next week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
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