NEW YORK, July 17 /PRNewswire-FirstCall/ -- Mortgage rates continued the retreat, with the average conforming 30-year fixed mortgage rate falling to 6.42 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.45 discount and origination points.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO ) The average 15-year fixed rate mortgage popular for refinancing declined to 5.95 percent, while the average jumbo 30-year fixed rate held steady at 7.64 percent. Adjustable mortgage rates were mixed, with the average 1-year ARM rising to 6.21 percent and the average 5/1 ARM holding at 6.05 percent.
Mounting worries about the economy and the health of the financial system drew investors out of stocks and into the relative safety of bonds. Mortgage rates are closely related to yields on risk-free Treasury notes. Amid the nervousness, mortgage rates touched lows not seen since the first week of June. But inflation remains an issue, as evidenced by the Consumer Price Index for June, and will continue to spar with weak economic growth as the factors influence the direction of mortgage rates. The up and down yo-yo of mortgage rates seems likely to continue, with rates fluctuating within a range.
Mortgage rates have been on a wild ride since the beginning of the year. The average 30-year fixed mortgage rate was as low as 5.57 percent in January, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38. But at today's rate of 6.42 percent, a $200,000 loan would mean a monthly payment of $1,253.63.
SURVEY RESULTS
30-year fixed: 6.42% -- down from 6.48% last week (avg. points: 0.45)
15-year fixed: 5.95% -- down from 6.01% last week (avg. points: 0.41)
5/1 ARM: 6.05% -- unchanged from last week (avg. points: 0.37)
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. This week, a whopping 70 percent predict rates will rebound and move higher. The remaining panelists are evenly split, with 15 percent expecting rates to remain more or less unchanged and 15 percent forecasting further declines in the next 30 to 45 days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI About Bankrate, Inc. (NASDAQ:RATE) The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure and InsureMe. Each of these businesses helps consumers to 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 2007, Bankrate.com had nearly 60 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (NASDAQ:YHOO), America Online (NYSE:TWX), The Wall Street Journal and The New York Times (NYSE:NYT). Bankrate.com's information is also distributed through more than 500 newspapers.
For more information contact:
Kayleen Keneally
Senior Director, Corporate Communications
917-368-8677 NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO http://photoarchive.ap.org/ DATASOURCE: Bankrate, Inc.
CONTACT: Kayleen Keneally, Senior Director, Corporate Communications, Bankrate, Inc., +1-917-368-8677, Web site: http://www.bankrate.com/ http://www.bankrate.com/mortgagerates http://www.bankrate.com/RTI
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