May 13, 2010
The cost of a home mortgage continues to get cheaper. Interest rates declined for the third week in a row, with the average conforming 30-year fixed mortgage rate falling to 5.07 percent, according to Bankrate.com's weekly national survey.
The average 30-year fixed mortgage has an average of 0.42 discount and origination points.
The average 15-year fixed mortgage stepped down to 4.45 percent and the larger jumbo 30-year fixed rate sank to 5.85 percent. Adjustable rate mortgages were mostly lower, with the average 3-year ARM back pedaling to 4.44 percent while the 5-year ARM dropped to 4.27 percent.
Worries over European debt rattled financial markets and brought mortgage rates to the lowest level since St. Patrick's Day.
Once again mortgage shoppers were direct beneficiaries as nervous investors equate to lower mortgage rates. Furthermore, this cloud of global economic uncertainty likely gives the Federal Reserve even more latitude to hold the line on interest rates, so mortgage rates will stay a little lower, a little longer, than what was forecast just a few weeks ago.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average 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 5.07 percent, the monthly payment for the same size loan would be $1,082.22, a savings of $159 per month for a homeowner refinancing now.
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.
