Mortgage rates fell this week, with the average 30-year fixed mortgage rate dropping to 6.2%, according to Bankrate.com's weekly national survey.
The average 15-year fixed-rate mortgage popular for refinancing retreated to 5.95%, while the average jumbo 30-year fixed-rate was down slightly to 7.61%. Adjustable mortgage rates were sharply lower, with the average one-year adjustable-rate mortgage (ARM) down to 5.89% and the average 5/1 ARM pulling back to 6.21%.
Mortgage rates continue to be volatile, fluctuating greatly from one day to the next. Although mortgage rates are pegged to long-term Treasury yields, the spread above risk-free Treasury yields is ever-changing as credit worries prevail. The movement of fixed mortgage rates is not directly influenced by the Federal Reserve's cut to short-term interest rates.
This year has seen a low in January of 5.57% and a high of 6.77% in July. At today's rate of 6.2%, a $200,000 loan carries a monthly payment of $1,224.94.