The benchmark conforming 30-year fixed mortgage rate set a new record for the third consecutive week, dropping to 4.35 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.38 discount and origination points.
The average 15-year fixed mortgage remained at 3.48 percent while the larger jumbo 30-year fixed rate set a new low of 4.86 percent. Adjustable rate mortgages were mixed, with the average 5-year ARM ticking higher to 3.1 percent while the 7-year ARM slid to another record low of 3.21 percent.
A lackluster jobs report brought mortgage rates down for a sixth consecutive week. Fears of a looming recession or prolonged economic malaise have enhanced the appeal of long-term Treasury securities, with yields venturing into record-low territory. Fixed mortgage rates and yields on mortgage-backed bonds are closely related to yields on 10-year Treasury notes. While the Federal Reserve may take steps to further reduce these long-term interest rates in hopes of bringing mortgage rates still lower, expanding the pool of eligible refinancers would make the low mortgage rates more impactful on the economy.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.35 percent, the monthly payment for the same size loan would be $995.62, a difference of $246 per month for anyone refinancing now.
Steve Myers, Broker
Lake Weir Realty
1 (352) 288-1494
Steve Myers is Lake Weir Florida’s Real Estate Expert. To view Lake Weir area listings, visit Lake Weir Realty.
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