Mortgage rates dipped again this week, with the benchmark 30-year fixed mortgage rate dropping to 4.09 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.22 discount and origination points.
The larger jumbo 30-year fixed rate dropped back below the conforming 30-year fixed mortgage to a three-month low of 4.05 percent, while the average 15-year fixed mortgage ticked lower to 3.27 percent. Adjustable mortgage rates were mixed, with the 3-year ARM nosing higher to 3.27 percent and the 5-year ARM stepping back to 3.22 percent.
Mortgage rates were lower for a second consecutive week following some tepid economic data. Disappointing releases on consumer confidence as well as new home sales and pending home sales brought bond yields and mortgage rates lower for the week. Mortgage rates are closely related to yields on long-term government bonds. This week’s meeting of the Federal Open Market Committee had little impact on mortgage rates as the eventuality of an initial interest rate hike is already largely reflected. Even once the Federal Reserve begins to raise interest rates, Fed Chair Janet Yellen has pledged a gradual pace of movement, which has helped to keep mortgage rates in check.
In mid-April, mortgage rates were at the lowest point in nearly two years when the average 30-year fixed mortgage rate was 3.79 percent. At that time, a $200,000 loan would have carried a monthly payment of $930.78. With the average rate now at 4.09 percent, the monthly payment for the same size loan would be $965.24, a difference of $34 per month for anyone that sat on the fence for too long.
SURVEY RESULTS
30-year fixed: 4.09% — down from 4.12% last week (avg. points: 0.22)
15-year fixed: 3.27% — down from 3.30% last week (avg. points: 0.18)
5/1 ARM: 3.22% — down from 3.24% last week (avg. points: 0.19)
Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.
For a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com/finance/mortgages/mortgage-analysis-073015.aspx
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. There is not a clear consensus, with 44 percent forecasting a rebound in mortgage rates while 33 percent predict mortgage rates will continue falling. Just under one-quarter of respondents, 23 percent, expect mortgage rates to remain more or less unchanged in the coming week.
About Bankrate, Inc.
Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, CreditCards.com, InsuranceQuotes.com and Caring.com, our flagship websites, and other owned and operated personal finance websites, including Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, CarInsuranceQuotes.com, Insweb.com, CreditCards.ca, and NetQuote.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to over 100 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.
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