Bankrate: Mortgage Rates Lowest Since Halloween

NEW YORK, May 22, 2014 /PRNewswire/ -- 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.

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.

SURVEY RESULTS

30-year fixed: 4.29% -- down from 4.33% last week (avg. points: 0.36)

15-year fixed: 3.38% -- down from 3.42% last week (avg. points: 0.2)

5/1 ARM: 3.21% -- down from 3.31% last week (avg. points: 0.21)

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 Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Panelists aren't expecting much change in the upcoming week, with a whopping 89 percent predicting mortgage rates will remain more or less unchanged. Just 11 percent expect mortgage rates to fall further in the coming week, while the no one forecast in increase in mortgage rates over the next seven days.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/news/rate-trends/mortgage.aspx.

To download the Bankrate Mortgage Calculator & Mortgage Rates iPhone App 2.0 go to
https://itunes.apple.com/us/app/bankrate-mortgage-calculator/id551454062?mt=8.

About Bankrate, Inc.

Bankrate (NYSE: RATE) is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, our flagship website, and other owned and operated personal finance websites, including CreditCards.com, Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, InsuranceQuotes.com, CarInsuranceQuotes.com, InsureMe.com, and NetQuote.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of nearly 600 local markets in all 50 U.S. states, Bankrate generates over 172,000 distinct rate tables capturing on average over three million pieces of information daily. Bankrate develops and provides web services to over 80 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, CNN Money, CNBC, and Comcast. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.

For more information contact:
Kayleen Yates
Senior Director, Corporate Communications
[email protected] 
(917) 368-8677

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SOURCE Bankrate, Inc.

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