Mortgage rates were mixed last week, with the benchmark 30-year fixed mortgage rate reversing last week's move and settling at 3.80 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.29 discount and origination points.
The average 15-year fixed mortgage dropped to 3.13 percent, down 3.18 percent from last week. The 30-year fixed mortgage was down 3.81 percent from the previous week at 3.80 percent. Adjustable rate mortgages were mostly higher, with the 7-year ARM climbing to 3.37 percent and the 10-year ARM rising to 3.65 percent.
Mortgage rates remain at the lowest levels since May 2013, despite an improving U.S. economy. The economic sluggishness overseas and increased stimulus from other central banks around the globe have kept the Federal Reserve 'patient' about raising interest rates and helped bring both bond yields and mortgage rates lower. Mortgage rates are closely related to yields on long-term government bonds.
One year ago, the average 30-year fixed mortgage rate was 4.50 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,013.37. With the average rate now at 3.80 percent, the monthly payment for the same size loan would be $931.91, a savings of approximately $81 per month for anyone refinancing now.
Published with permission from RISMedia.