Mortage rates fall to new low
Press Release
Source: Bankrate, Inc.
Bankrate: Mortgage Rates Fall to Three-month Low
Thursday August 3, 7:30 am ET
NEW YORK, Aug. 3 /PRNewswire-FirstCall/ -- Mortgage rates declined for the third time in the last four weeks on the heels of slower second quarter economic growth. The average 30-year fixed rate mortgage fell to 6.65 percent, the lowest since April 26. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.3 discount and origination points.
The average 15-year fixed rate mortgage, popular for refinancing, dropped by a similar amount to 6.3 percent. On larger loans, the average jumbo 30-year fixed rate declined to 6.86 percent. Adjustable rate mortgages also declined. The average 5/1 adjustable rate mortgage slid to 6.36 percent, and the average one-year ARM retreated to 6.03 percent.
Validation that the economy did indeed grow at a slower pace pushed mortgage rates lower this week. The initial Gross Domestic Product for second quarter revealed a growth rate of 2.5 percent, but mortgage rates have fallen by one-quarter percentage point in the past month on mounting evidence that the economy is downshifting. Slower economic growth increases demand for long- term government bonds and reduces fears of inflation over a long horizon. Both send Treasury yields lower. Mortgage rates are closely related to yields on long-term Treasury securities.
Fixed mortgage rates are nearly three-quarters of a percentage point higher than one year ago. One year ago, the average 30-year fixed mortgage rate was 5.91 percent, meaning that the monthly payment on a loan of $165,000 was $979.73. With the average 30-year fixed rate now 6.65 percent, the same loan originated today would carry a monthly payment of $1,059.24. Despite recent increases, fixed mortgage rates remain an attractive refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.
SURVEY RESULTS
30-year fixed: 6.65% -- down from 6.77% last week (avg. points: 0.3)
15-year fixed: 6.3% -- down from 6.39% last week (avg. points: 0.32)
5/1 ARM: 6.36% -- down from 6.47% last week (avg. points: 0.28)
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 forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. The panelists say rates are unlikely to fall further. Half of respondents expect rates to rise, and 40 percent say rates will remain unchanged. Just 10 percent predict that rates will decline in the next 30 to 45 days.
For the full mortgage Rate Trend Index, go to: http://www.bankrate.com/RTI
About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE - News) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. It is the leading aggregator of more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2005, Bankrate.com had over 46 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO - News), America Online (NYSE: TWX - News), The Wall Street Journal (NYSE: DJ - News) and The New York Times (NYSE: NYT - News). Bankrate.com's information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate, Inc. also owns and operates FastFind, an internet lead aggregator and MMIS/Interest.com, which publishes mortgage guides and financial rates and information.
NOTE TO EDITORS:
Interviews: The reporters, financial experts and management team are available for print, Web, radio and TV interviews -- live or taped.
Analysis, fact checking: Our personal finance experts can offer insights, quotes, background, research and rate data.
Radio: The Bankrate Personal Finance Minute for radio is available for broadcast. Multiple talkers available for shows -- live or taped.
TV: Our experts are experienced with live and taped segments. We have talkers available via satellite feed.
Print/Web: Award-winning reporters and editors creating thousands of evergreen and fresh articles for your paper or site.
Editor Alert: Receive breaking news from Bankrate via your e-mail: http://www.bankrate.com/editorsalert
Learn more about Bankrate management:
http://www.bankrate.com/coinfo/staff.asp
Use Bankrate.com's Press Page: http://www.bankrate.com/broadcast
For more information, contact:
Kayleen Keneally
Director, Corporate Communications
kkeneally@bankrate.com
917-368-8677
posted at 5:12 PM
Source: Bankrate, Inc.
Bankrate: Mortgage Rates Fall to Three-month Low
Thursday August 3, 7:30 am ET
NEW YORK, Aug. 3 /PRNewswire-FirstCall/ -- Mortgage rates declined for the third time in the last four weeks on the heels of slower second quarter economic growth. The average 30-year fixed rate mortgage fell to 6.65 percent, the lowest since April 26. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.3 discount and origination points.
The average 15-year fixed rate mortgage, popular for refinancing, dropped by a similar amount to 6.3 percent. On larger loans, the average jumbo 30-year fixed rate declined to 6.86 percent. Adjustable rate mortgages also declined. The average 5/1 adjustable rate mortgage slid to 6.36 percent, and the average one-year ARM retreated to 6.03 percent.
Validation that the economy did indeed grow at a slower pace pushed mortgage rates lower this week. The initial Gross Domestic Product for second quarter revealed a growth rate of 2.5 percent, but mortgage rates have fallen by one-quarter percentage point in the past month on mounting evidence that the economy is downshifting. Slower economic growth increases demand for long- term government bonds and reduces fears of inflation over a long horizon. Both send Treasury yields lower. Mortgage rates are closely related to yields on long-term Treasury securities.
Fixed mortgage rates are nearly three-quarters of a percentage point higher than one year ago. One year ago, the average 30-year fixed mortgage rate was 5.91 percent, meaning that the monthly payment on a loan of $165,000 was $979.73. With the average 30-year fixed rate now 6.65 percent, the same loan originated today would carry a monthly payment of $1,059.24. Despite recent increases, fixed mortgage rates remain an attractive refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.
SURVEY RESULTS
30-year fixed: 6.65% -- down from 6.77% last week (avg. points: 0.3)
15-year fixed: 6.3% -- down from 6.39% last week (avg. points: 0.32)
5/1 ARM: 6.36% -- down from 6.47% last week (avg. points: 0.28)
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 forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. The panelists say rates are unlikely to fall further. Half of respondents expect rates to rise, and 40 percent say rates will remain unchanged. Just 10 percent predict that rates will decline in the next 30 to 45 days.
For the full mortgage Rate Trend Index, go to: http://www.bankrate.com/RTI
About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE - News) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. It is the leading aggregator of more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2005, Bankrate.com had over 46 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO - News), America Online (NYSE: TWX - News), The Wall Street Journal (NYSE: DJ - News) and The New York Times (NYSE: NYT - News). Bankrate.com's information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate, Inc. also owns and operates FastFind, an internet lead aggregator and MMIS/Interest.com, which publishes mortgage guides and financial rates and information.
NOTE TO EDITORS:
Interviews: The reporters, financial experts and management team are available for print, Web, radio and TV interviews -- live or taped.
Analysis, fact checking: Our personal finance experts can offer insights, quotes, background, research and rate data.
Radio: The Bankrate Personal Finance Minute for radio is available for broadcast. Multiple talkers available for shows -- live or taped.
TV: Our experts are experienced with live and taped segments. We have talkers available via satellite feed.
Print/Web: Award-winning reporters and editors creating thousands of evergreen and fresh articles for your paper or site.
Editor Alert: Receive breaking news from Bankrate via your e-mail: http://www.bankrate.com/editorsalert
Learn more about Bankrate management:
http://www.bankrate.com/coinfo/staff.asp
Use Bankrate.com's Press Page: http://www.bankrate.com/broadcast
For more information, contact:
Kayleen Keneally
Director, Corporate Communications
kkeneally@bankrate.com
917-368-8677
posted at 5:12 PM
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