Mortgage rates moved lower once again, with the average 30-year fixed mortgage rate setting a new record low of 3.87%, according to Bankrate.com’s weekly national survey.
The average 30-year fixed mortgage has an average of 0.43 discount and origination points.
The average 15-year fixed mortgage rate fell to 3.13%, while the jumbo 30-year fixed mortgage ticked lower to 4.47%, both record lows.
Adjustable mortgage rates were mixed, with the average 3/1 ARM rate inching higher to 3.07% while the rate on the popular 5/1 adjustable pulled back below the 3% threshold to a record low of 2.96%.
Mortgage rates continue to drift lower. While Europe has staved off any immediate meltdown — at least temporarily — concerns about the U.S. economy continue to mount as hiring is slow and the manufacturing sector shows surprising weakness. The prevailing nervousness in financial markets, surrounding both Europe and the global economic landscape, are keeping mortgage rates at ultra-low levels.
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 3.87%, the monthly payment for the same size loan would be $939.90, a difference of nearly $302 per month for anyone refinancing now.