The average 30-year fixed mortgage rate fell to a seven-month low of 5.19 percent last week according to Bankrate.com’s weekly national survey. The drop is due to the weak job market and investors repositioning ahead of large government debt auctions. Investors often lighten up on government bonds prior to an auction, and increase exposure to higher-yielding mortgage-backed bonds.
Zillow reported yesterday that national mortgage rates on 30-year fixed mortgages remained stable at 4.72 percent. State rates ranged from a low of 4.67 percent (UT) to a high of 4.89 percent (NY).
Compared to the week prior to November 12, 2009, the national 30-year mortgage rate is down 4 basis points from 4.76 percent. Compared to three months ago, the 30-year rate is down 58 basis points from its average rate of 5.30 percent.
Bankrate said mortgage rates are more than one full percentage point lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.39 percent, meaning a $200,000 loan would have carried a monthly payment of $1,249.70. With the average rate now 5.19 percent, the monthly payment for the same size loan would be $1,096.99, a savings of $152 per month for a homeowner refinancing now.
BANKRATE SURVEY RESULTS
30-year fixed: 5.19 percent -- down from 5.35 percent last week (avg. points: 0.38)
15-year fixed: 4.61 percent -- down from 4.72 percent last week (avg. points: 0.30)
5/1 ARM: 4.58 percent -- down from 4.64 percent last week (avg. points: 0.29)
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