According to Bankrate.com's weekly national survey, fixed mortgage rates fell for the sixth straight week, with the benchmark 30-year retreating to a four-month low of 3.57%. The average 30-year fixed mortgage has an average of 0.31 discount and origination points.
Among other loan products, the average 15-year fixed mortgage set a new record low: 2.8%. The 30-year fixed mortgage rate on jumbos held at 3.98%. Adjustable-rate mortgages were mostly lower, with the five-year ARM settling at a new low of 2.65%, the seven-year ARM holding at 2.87%, and the 10-year ARM dipping to a three-month low of 3.21%.Â
Mortgage rates continue to trend lower as uneven economic data has raised concerns about another economic slowdown, according to Bankrate.com. The accompanying stock market volatility has also been good for mortgage rates by increasing demand for both government- and mortgage-backed bonds, to which mortgage rates are closely related.
The last time mortgage rates were above 5% was April 2011. At the time, the average 30-year fixed rate was 5.07%, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate currently at 3.57%, the monthly payment for the same size loan would be $905.92, a difference of $176 per month for anyone refinancing now.