Bankrate: Mortgage Rates Slide for Third Straight Week
By Daniel at 4 September, 2008, 3:34 pm
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Bankrate: Mortgage Rates Slide for Third Straight Week
NEW YORK, Sept 04, 2008 /PRNewswire-FirstCall via COMTEX/ — Economic worries
pushed mortgage rates down again, with the average conforming 30-year fixed
mortgage rate falling to 6.55 percent. According to Bankrate.com’s weekly
national survey of large lenders, the average 30-year fixed mortgage has an
average of 0.41 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing dropped to 6.09
percent, while the average jumbo 30-year fixed rate retreated to 7.52 percent.
Adjustable mortgage rates were mostly higher, with the average 1-year ARM jumping
to 6.43 percent and the average 5/1 ARM inching up to 6.29 percent.
Mortgage rates moved lower amid mounting economic worries, and not just worries
about the U.S. economy. A global economic slowdown has investors favoring the
safe haven of Treasury securities, with yields falling as bond prices rise. The
appeal of Treasuries has been enhanced by the retreat in oil prices, which eases
the inflation angst of bond investors. The movements in mortgage rates are often
closely related to yields on long-term government bonds. Mortgage rates continue
to hover at an abnormally wide margin above Treasuries, reflecting the record
delinquencies and ongoing credit crunch.
Although mortgage rates have been relatively calm in recent weeks, it has been a
wild ride for much of 2008. Seven months ago, the average 30-year fixed mortgage
rate was 5.78 percent, meaning that a $200,000 loan would have carried a monthly
payment of $1,170.96. But at today’s rate of 6.55 percent, a $200,000 loan would
mean a monthly payment that is $100 higher, at $1,270.72.
SURVEY RESULTS
30-year fixed: 6.55% — down from 6.60% last week (avg. points: 0.41)
15-year fixed: 6.09% — down from 6.14% last week (avg. points: 0.41)
5/1 ARM: 6.29% — up from 6.27% last week (avg. points: 0.35)
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
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