Mortgage rates dropped for the fourth week in a row, with the average conforming 30-year fixed mortgage rate now 5.57 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.33 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing fell to 5.11 percent, and the average jumbo 30-year fixed rate eased to 6.85 percent. Adjustable mortgage rates plummeted, with the average one-year ARM plunging to 5.41 percent, and the average 5/1 ARM sinking to 5.35 percent.
Adjustable mortgage rates plunged following an emergency interest rate cut by the Federal Reserve. The repeated rate cuts by the Fed will benefit the many homeowners with adjustable mortgage resets still to come in 2008. The result will be payment increases that are much more manageable, enabling homeowners to remain current on their loans and avoid a payment-shock induced foreclosure. The economic worries that compelled the Fed to act have also pushed fixed mortgage rates to the lowest level since March 2004. Refinancing and locking in a permanently affordable monthly payment is an attractive option for many of those same homeowners.
Fixed rate mortgages are currently the most attractive option for borrowers. Six months ago -- on July 25 -- the average 30-year fixed mortgage rate was 6.75 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,297.20. Now that the average conforming 30-year fixed rate is 5.57 percent, the same $200,000 loan carries a monthly payment of $1,144.38.
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.
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. Most respondents say we've reached the bottom, with 64 percent predicting mortgage rates will rise from these low levels. Just 29 percent feel mortgage rates could fall further and the remaining 9 percent expect rates to remain more or less unchanged in the coming 30 to 45 days.
About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate is the leading aggregator of 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 reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2006, Bankrate.com had nearly 53 million unique visitors. Bankrate provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO - News), America Online (NYSE: TWX - News), The Wall Street Journal (NYSE: DJ - News) and The New York Times (NYSE: NYT - News). Bankrate's information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates Bankrate Select, an Internet lead aggregator, Mortgage-calc.com, which provides consumers with financial calculators, Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information, Nationwide Card Services (NCS), which markets a comprehensive line of consumer and business credit cards via the Internet and Savingforcollege.com, the premier Internet destination for objective information about 529 college savings plans.