Housing package bill passes Senate

Housing package bill passes Senate

July 14, 2008

Bankrate survey: Mortgage rates fall two consecutive weeksMortgagePress.comBankrate, survey, mortgage rates, lenders
Mortgage rates moved lower once again, with the average
conforming 30-year fixed mortgage rate falling to 6.48 percent.
According to Bankrate.com's weekly national survey of large
lenders, the average 30-year fixed mortgage has an average of 0.37
discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing
declined to 6.01 percent, while the average jumbo 30-year fixed
rate stepped back to 7.64 percent. Adjustable mortgage rates
followed suit, with the average one-year ARM sinking to 6.17
percent and the average 5/1 ARM dropping to 6.05 percent.
Continued worries about the economy and the health of the
financial system have investors craving bonds. Mortgage rates are
closely related to yields on long-term government bonds. As
investors have fled a volatile stock market, much of the money has
ended up in fixed income investments such as Treasury securities
and mortgage bonds. This brings mortgage rates down, though not
enough to match the decline in Treasury yields in recent weeks. The
wider spread between mortgage bonds and risk-free Treasury yields
represents the ongoing concerns about credit quality and strains in
many corners of the debt markets.
Mortgage rates have been on a wild ride since the beginning of
the year. The average 30-year fixed mortgage rate was as low as
5.57 percent in January, meaning that a $200,000 loan would have
carried a monthly payment of $1,144.38. But at todays rate of 6.48
percent, a $200,000 loan would mean a monthly payment of
Survey results
• 30-year fixed: 6.48 percent--down from 6.53 percent last
week (avg. points: 0.37)
• 15-year fixed: 6.01 percent--down from 6.09 percent last
week (avg. points: 0.41)
• 5/1 ARM: 6.05 percent--down from 6.09 percent last week
(avg. points: 0.34)
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, click
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. This
week, 46 percent predict rates to decline further, while 31 percent
expect mortgage rates to rebound and move higher. Just 23 percent
forecast that mortgage rates will remain more or less unchanged
over the next 30 to 45 days.
For the full mortgage Rate Trend Index, click here.