Mortgage rates moved into record low territory again this week, with the average rate on the benchmark 30-year fixed mortgage rate settling at 4.10%, a level last seen in February, 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 rate was unchanged, holding at a record low of 3.32%, while the jumbo 30-year fixed mortgage ticked lower to 4.61%. Adjustable mortgage rates were mostly lower, with the average 3-year, 7-year, and 10-year ARMs setting new record lows of 3.08%, 3.19%, and 3.52%, respectively.
The recurring European debt issues helped drive mortgage rates back down to record low levels. In addition to Europe’s debt issues, slowing Chinese economic growth and concerns about the sustainability of both corporate earnings and U.S. economic health continue to weigh on investors. When investors get nervous, they gravitate toward the safety of U.S. Treasury securities. Mortgage rates are closely related to yields on long-term government debt.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.10%, the monthly payment for the same size loan would be $966.40, a difference of $275 per month for anyone refinancing now.
More survey results:
- 30-year fixed: 4.10% — down from 4.11% last week (avg. points: 0.42)
- 15-year fixed: 3.32% — unchanged from last week (avg. points: 0.4)
- 5/1 ARM: 3.05% — up from 3.03% last week (avg. points: 0.32)
Source: Bankrate, Inc.