Bankrate: Mortgage Rates Fall to 4-Month Lows

NEW YORK, Oct 24, 2013 /PRNewswire/ -- Mortgage rates fell to the lowest level since mid-June, with the benchmark 30-year fixed mortgage rate down to 4.27 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.32 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 settled at 3.37 percent, while the larger jumbo 30-year fixed mortgage rate sank to 4.38 percent. Adjustable rate mortgages moved notably lower also, with the popular 5-year ARM dropping to 3.27 percent and the 10-year adjustable rate sliding to 3.94 percent.    

Even though the government shutdown ended and a debt ceiling crisis was avoided, mortgage rates staged quite a retreat this week. Why? Worries about the damage inflicted on the economy by the circus in Washington, and a disappointing September jobs report, drove investors into the haven of government bonds, driving yields lower. Mortgage rates are closely related to yields on long-term government bonds. As we play catch-up on economic data, and get a read on the economy over the next month or so, this uncertainty should keep a lid on mortgage rates.

As recently as May 1^st, the average 30-year fixed mortgage rate was 3.52 percent. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.27 percent, the monthly payment for the same size loan would be $986.22, a difference of nearly $86 per month for anyone that waited too long.

SURVEY RESULTS

30-year fixed: 4.27% -- down from 4.42% last week (avg. points: 0.32)

15-year fixed: 3.37% -- down from 3.49% last week (avg. points: 0.24)

5/1 ARM: 3.27% -- down from 3.31% last week (avg. points: 0.24)

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/.

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. More than three-quarters of respondents, 77 percent, believe mortgage rates will continue to fall in the coming week, while 15 percent expect mortgage rates to remain more or less unchanged. Just 8 percent predict that mortgage rates will rise in the next week.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.

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 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          

SOURCE Bankrate