News Column

Bankrate: Mortgage Rates Lowest Since Halloween

June 6, 2014



By a News Reporter-Staff News Editor at Real Estate Weekly News -- Mortgage rates retreated for the fourth week in a row, and sixth time in the past seven weeks, with the benchmark 30-year fixed mortgage rate pulling back to 4.29 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.36 discount and origination points.

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To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage rate slumped to 3.38 percent, while the larger jumbo 30-year fixed mortgage rate stepped back to 4.31 percent. Adjustable rate mortgages were lower also, with the 5-year ARM and 7-year ARM each sliding to an 11-month low of 3.21 percent and 3.45 percent, respectively.

Mortgage rates have been on the downswing as the possibility of a low interest rate environment persisting longer than expected is drawing increased consideration from investors. The Federal Reserve remains concerned about inflation being too low, readings on the housing market have been disappointing of late - both of which lead to uncertain conclusions about the U.S. economy - and the European Central Bank is widely expected to begin their own round of bond purchases in the coming months. Each of these argues for interest rates, including mortgage rates, remaining lower than expected, longer than what had been expected just a few months ago.

As 2013 came to a close, the average 30-year fixed mortgage rate was 4.69 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,036.07. After drifting lower for much of the first five months of 2014, the average rate is now 4.29 percent, and the monthly payment for the same size loan would be $988.57, a savings of nearly $50 per month for anyone that waited.

Keywords for this news article include: Real Estate, Bankrate Inc., Mortgage Rates.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Real Estate Weekly News


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