Mortgage rates fall to record low, according to Bankrate

By Palm Beach

DELRAY BEACH — Mortgage rates have fallen to lowest point ever recorded by
The North Palm Beach-based firm’s national mortgage survey found the average 30-year fixed mortgage rate fell to 5.06 percent, down from 5.19 percent a week earlier.

Freddie Mac’s Primary Mortgage Market Survey spotted the 30-year averaging 4.83 percent with an average 0.7 point, down from 4.91 percent a week earlier

“Interest rate on 30-year fixed-rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21st, while 15-year fixed rates were the lowest since our records began in 1991,” Freddie Mac Chief Economist Frank Nothaft said “Low fixed rates throughout the third quarter prompted an estimated $1.1 trillion in refinancing activity, saving homeowners about $10 billion in aggregate monthly payments over the first 12 months of their new loan.

“Moreover, for the fourth consecutive quarter, more than 95 percent of prime borrowers who originally had an ARM selected a conventional fixed-rate mortgage in the third quarter of this year.”

Bankrate said the low rates present a rare opportunity for homebuyers and homeowners alike.
“Historically, mortgage rates don't stay at record levels for long, so even though rates are unlikely to spike, grabbing record low rates means borrowers should act with some urgency,” the company said.

Also from the Bankrate survey: The average 15-year fixed mortgage was down to 4.48 percent while the larger jumbo 30-year fixed rate fell to 5.95 percent. Adjustable rate mortgages held somewhat steady, with the average 1-year ARM inching to 5.39 percent and the 5-year ARM holding firm at 4.58 percent.

Also from the Freddie Mac survey: The 15-year averaged 4.32 percent with an average 0.6 point, down from 4.36 percent.

The five-year ARM averaged 4.25 percent this week, down from 4.29 percent. The one-year ARM averaged 4.35 percent down from 4.46 percent. At this time last year, the 1-year ARM averaged 5.29 percent.

Bankrate's panel of mortgage experts sees rates pretty much treading water, although a significant number expects rates to rise. None see rates falling further.

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