NEW YORK, Aug. 21, 2014 /PRNewswire/ -- Mortgage rates moved lower for a second consecutive week, hitting a 14-month low. The benchmark 30-year fixed mortgage rate fell to 4.24 percent, and has an average of 0.28 discount and origination points according to Bankrate.com's weekly national survey.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage rate moved a touch lower to 3.37 percent, while the larger jumbo 30-year fixed mortgage rate sank to 4.29 percent. Adjustable rate mortgages were also lower, with the 5-year ARM slipping to 3.28 percent and the 7-year ARM stepping down to 3.49 percent, both three-month lows.
Muted inflation readings and ongoing tensions in hotspots around the globe helped fuel demand for bonds, pushing mortgage rates lower. Mortgage rates are closely related to yields on long-term government bonds. Any time there is reason for nervousness among investors, their movement into the perceived safe haven of bonds is good news for mortgage rates. Low inflation has also been a boon for bond demand as inflation erodes the fixed payments bond holders receive.
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. Mortgage rates have moved lower thus far in 2014, and with the average rate now 4.24 percent, the monthly payment for the same size loan would be $979.25, a savings of nearly $57 per month for anyone that waited.
30-year fixed: 4.24% -- down from 4.27% last week (avg. points: 0.28)
15-year fixed: 3.37% -- down from 3.39% last week (avg. points: 0.17)
5/1 ARM: 3.28% -- down from 3.324% last week (avg. points: 0.15)
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. The panelists still don't see rates headed much of anywhere, with more than half – 54 percent – expecting mortgage rates to remain more or less unchanged over the coming week. A bit more than one-third, 38 percent, forecast an increase but just 8 percent predict further declines.
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 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, CreditCards.com and InsuranceQuotes.com, our flagship websites, and other owned and operated personal finance websites, including Caring.com, Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, Nationwide Card Services, CarInsuranceQuotes.com, InsureMe, CreditCards.ca, 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!, AOL, CNBC, and Bloomberg. 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.
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