Mortgage Rates Fall Again; Fourth Decline in Five Weeks
A lack of definitive economic data helped keep mortgage rates at their lowest levels since mid-December, data from a new Bankrate.com survey shows.
Overall, home loan rates fell for the fourth time in the last five weeks, with the average 30-year fixed mortgage - the industry’s benchmark loan -dropping to a low 6.19 percent.
According to this national mortgage company survey, the 30-year, fixed-rate mortgage came with 0.3 origination fees - or points - on average.
The average 15-year fixed rate home mortgage, a popular option for those looking into refinancing a mortgage, remained unchanged at 5.95 percent.
On larger home loans, the average 30-year, fixed rate jumbo mortgage inched higher to 6.42 percent. Adjustable rate mortgages remained mixed, with the 5/1 ARM moving up to 6.04 percent and the one-year ARM sliding to 5.94.
The mortgage rates remained low on evidence of slower economic growth. Last week, the fourth quarter Gross Domestic Product was revised sharply lower. This week, productivity and factory orders came in lower than forecasted.
A survey of the manufacturing sector was stronger than expected, but at the same time, the larger services sector slowed notably. Prospects for slower economic growth help buoy demand for Treasury securities.
Such a sequence of events would push prices higher and yields lower. The rates of home mortgage loans are generally closely related to the yields assigned to long-term government bonds.
Fixed-rate mortgages are notably cheaper than last summer, when the Federal Reserve last raised interest rates (for the 17th straight time) in a campaign to combat inflation.
At the time, the average 30-year fixed-rate mortgage hit 6.93 percent, at which point a $165,000 home loan carried a monthly payment of $1,090.
With the average 30-year fixed rate now 6.19 percent, the same home loan originated this minute would carry a monthly payment of $1,010.
Fixed home loan rates today offer a compelling mortgage refinance option for adjustable-rate borrowers facing sharp payment adjustments.
SOURCE: Bankrate.com