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The average 15-year fixed rate mortgage retreated to 5.07 percent, while the average jumbo 30-year fixed rate fell below the 7 percent mark to 6.91 percent. Adjustable rate mortgages were mixed, with the average 1-year ARM rising to 5.17 percent and the 5-year ARM dropping to 5.17 percent.
Mortgage rates have retreated to levels last seen one month ago as evidence mounts of continued economic weakness. In the past several days, elevated unemployment claims, news that the economy contracted at an annual rate of 5.5 percent in the first three months of the year, and consumers increasing saving faster than spending, all contributed to a decline in government bond yields and mortgage rates. Fixed mortgage rates are closely related to yields on long-term government debt. Mortgage rates are likely to bob up and down as concerns alternate between economic weakness and future inflation, and spurts of volatility should be expected, especially given the uncertain economic and financial climate.
Mortgage rates are still much lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.53 percent, meaning a $200,000 loan would have carried a monthly payment of $1,268.08. With the average rate now 5.70 percent, the monthly payment for the same size loan would be $1,160.80, a savings of $108 per month for a homeowner refinancing now.
SURVEY RESULTS
30-year fixed: 5.7% -- down from 5.8% last week (avg. points: 0.48)
15-year fixed: 5.07% -- down from 5.16% last week (avg. points: 0.4)
5/1 ARM: 5.17% -- down from 5.26% last week (avg. points: 0.45)
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. The good news is that very few panelists see an increase in rates, with just 8 percent voting that way. The remaining panelists are evenly divided, with 46 percent forecasting a drop in mortgage rates and an equal 46 percent expecting mortgage rates to be more or less unchanged over the next 30 to 45 days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc.
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic.com. Each of these businesses helps consumers make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on 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.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2008, Bankrate.com had nearly 72 million unique visitors. Bankrate.com 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 and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers.
For more information contact:
Kayleen Keneally
Senior Director, Corporate Communications
kkeneally@bankrate.com
917-368-8677
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com
www.bankrate.com
SOURCE Bankrate, Inc.
http://www.bankrate.com
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