NEW YORK, July 3 /PRNewswire-FirstCall/ -- Mortgage rates were lower across the board, with the average conforming 30-year fixed mortgage rate falling to 6.53 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.4 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 6.09 percent, while the average jumbo 30-year fixed rate stepped back to 7.69 percent. Adjustable mortgage rates followed suit, with the average 5-year ARM sinking 6.09 percent and the average 10/1 ARM dropping to 6.56 percent.
Resurgent worries about the economy punished stocks, to the benefit of bonds. Mortgage rates are closely related to yields on long-term government bonds. As investors fled a volatile stock market, much of the money ended up in fixed income investments such as Treasury securities and mortgage bonds. This brought mortgage rates down, though not enough to match the decline in Treasury yields over the past two weeks. The wider spread between mortgage bonds and risk-free Treasury yields represents the ongoing concerns about credit quality and strains in many corners of the debt markets.
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 6.53 percent, a $200,000 loan would mean a monthly payment of $1,268.08.
SURVEY RESULTS
30-year fixed: 6.53% -- down from 6.62% last week (avg. points: 0.40)
15-year fixed: 6.09% -- down from 6.19% last week (avg. points: 0.39)
5/1 ARM: 6.09% -- down from 6.28% 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, 43 percent predict rates to decline, while 36 percent expect mortgage rates to remain more or less unchanged. Just 21 percent forecast an increase in mortgage rates 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 http://www.interest.com/ http://www.mortgage-calc.com/ http://www.savingforcollege.com/
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