Mortgage rates dropped this week, with the average rate on the benchmark 30-year fixed mortgage rate sliding to 4.11%, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.40 discount and origination points.
The average 15-year fixed mortgage rate fell to 3.32% and the jumbo 30-year fixed mortgage fell to 4.63%. Adjustable mortgage rates were also down, with the average 5-year ARM slipping to 3.03% and the 10-year rate moving to 3.55%.
Mortgage rates dropped sharply, spurred by a disappointing report on job growth for the month of March.
News that the U.S. economy added just 120,000 jobs renewed fears that the economic recovery may not be sustained. Add to that the ongoing European debt issues and forecasts for slower growth in corporate earnings, and you have the recipe for lower mortgage rates. Mortgage rates are closely related to yields on long-term government bonds.
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 4.11%, the monthly payment for the same size loan would be $967.56, a difference of $247 per month for anyone refinancing now.