NEW YORK, Oct. 25 /PRNewswire-FirstCall/ — Mortgage rates dropped notably this week, with the average conforming 30-year fixed mortgage rate now 6.31 percent. According to Bankrate.com’s weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.34 discount and origination points.
The average 15-year fixed rate mortgage, popular for refinancing, plunged from 6.17 percent to 6.00 percent. The average jumbo 30-year fixed rate retreated to 7.04 percent. Adjustable mortgage rates declined as well, with the average one-year ARM down to 6.09 percent, and the average 5/1 ARM falling to 6.12 percent.
More jitters about the housing market and its effect on the economy drove mortgage rates lower. Bank earnings brought a renewed focus to mortgage delinquencies and concerns about the credit markets helped drive investors into the safe haven of long-term government bonds. Fixed mortgage rates are closely related to the yields on Treasury securities. The average 30-year fixed mortgage rate dropped from 6.49 percent to 6.31 percent in the past week. Also, the spread between jumbo and conforming mortgage rates continues to improve, now at its narrowest since early August. The average jumbo 30-year fixed mortgage rate is 7.04 percent, and that is the lowest since July 25.
Fixed mortgage rates remain the most attractive option for borrowers. Just three months ago, the average 30-year fixed mortgage rate was 6.75 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,297.20. Now that the average conforming 30-year fixed rate is 6.31 percent, the same $200,000 loan carries a monthly payment of $1,239.25.
SURVEY RESULTS
30-year fixed: 6.31% — down from 6.49% last week (avg. points: 0.34)
15-year fixed: 6.00% — down from 6.17% last week (avg. points: 0.35)
5/1 ARM: 6.12% — down from 6.26% last week (avg. points: 0.31)
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/mortgagerates.
The survey is complemented by Bankrate’s weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. There is no clear consensus among the panel this week, with 38 percent predicting a decline in rates over the next 30 to 45 days. The remaining respondents are evenly split, with 31 percent forecasting a rebound in rates and 31 percent expecting rates to remain more or less unchanged over the coming weeks.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.
About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE) (“Bankrate”) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate is the leading aggregator of more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2006, Bankrate.com had nearly 53 million unique visitors. Bankrate provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: TWX), The Wall Street Journal (NYSE: DJ) and The New York Times (NYSE: NYT). Bankrate’s information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates Bankrate Select, an Internet lead aggregator, Mortgage-calc.com, which provides consumers with financial calculators, and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information.
For more information contact:
Kayleen Keneally
Senior Director, Corporate Communications
kkeneally (at) bankrate (dot) com
917-368-8677
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com.
SOURCE Bankrate, Inc.
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