NEW YORK, March 25 /PRNewswire-FirstCall/ -- Mortgage rates moved to levels most have never seen, with the average 30-year fixed mortgage rate dropping to 5.19 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.
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The average 15-year fixed rate mortgage retreated to 4.80 percent and the average jumbo 30-year fixed rate fell to 6.66 percent. Adjustable rate mortgages were lower also, with the average 1-year ARM pulling back to 5.30 percent and the 5/1 ARM slipping to 5.21 percent.
Mortgage rates fell lower than ever recorded in the 24 years of Bankrate's survey, eclipsing the previous low of 5.28 percent seen this January and in June 2003. The last time mortgage rates were recorded lower than this was December 1956, according to the National Bureau of Economic Research. Jumbo mortgage rates benefited as well, with rates now at the lowest level since May 2007, prior to the onset of the credit crunch. The catalyst for the decline in rates was the Federal Reserve's March 18 announcement of stepped up mortgage debt purchases and an initiative to buy Treasury securities.
Mortgage rates have dropped substantially over the past five months. The average 30-year fixed mortgage rate in late October was 6.77 percent, meaning a $200,000 loan would have carried a monthly payment of $1,299.86. With the average rate now at 5.19 percent, the monthly payment for the same size loan would be $1,096.99, a savings of more than $200 per month for a homeowner refinancing now.
SURVEY RESULTS 30-year fixed: 5.19% -- down from 5.29% last week (avg. points: 0.42) 15-year fixed: 4.80% -- down from 4.86% last week (avg. points: 0.49) 5/1 ARM: 5.21% -- down from 5.24% last week (avg. points: 0.52)
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. Don't hold out for lower rates, as only 25 percent of the panelists expect mortgage rates to fall further. Half of the respondents forecast a rebound in rates, and the remaining 25 percent predict rates will remain more or less unchanged in 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! , America Online , The Wall Street Journal and The New York Times . Bankrate.com's information is also distributed through more than 500 newspapers.
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com
http://www.bankrate.com/ For more information contact: Kayleen Keneally Senior Director, Corporate Communications kkeneally@bankrate.com 917-368-8677
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