Mortgage rates experienced another plunge last week, amid unfavourable economic news in the US and abroad.
The Bankrate.com’s national survey of large lenders revealed that the standard 30-year fixed-rate mortgage dropped six basis points this week to 4.69 percent.
It added that the mortgages had an average total of 0.39 discount and origination points. Last year, the mortgage index was registered at 4.95 percent, while four weeks ago, it was recorded at 4.88 percent.
The standard 15-year fixed-rate home loan dropped five basis points to 3.88 percent. The standard 5/1 adjustable-rate mortgage decreased six basis points to 3.39 percent and the standard 30-year fixed rate jumbo mortgage dropped five basis points to 5.16 percent.
Meanwhile, two rate records were seen last week. According to Bankrate’s survey, this was the first time the 30-year fixed rate has fallen for eight consecutive weeks, as well as the lowest rate on the 5/1 adjustable since Bankrate began tracking 5/1 ARMs in January 2005.
Mortgage specialists believe that last week’s slew of negative economic reports affected the result of the survey.
Rob Nunziata, President of FBC Mortgage in Orlando, Florida, said, “Based on the housing data and all the other reports we are seeing right now, I think rates will remain low during the next couple of weeks.”
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