Mortgage rates are on a decline

According to the Bankrate weekly national survey, the yardstick confirming the 30-year fixed mortgage rate laid down a new record for the fourth successive week by dropping to 4.32 percent. Usually the 30-year fixed mortgage rate has an average of 0.42 discount. On one hand, the 15-year fixed mortgage rate fell to 3.44 percent where as, on the other hand, the 30-year fixed mortgage rate fell to 4.83 percent. It was seen that the adjustable mortgage rates had also fallen down. The 7-year adjustable mortgage rate fell to 3.2 percent and the 10-year fell to 3.76 percent.

The current fall in the mortgage interest rates is because of the ongoing debt related matters on the other side of the Atlantic. The uneasiness about whether the debt problems of Europe will grow rapidly into an extensive financial panic has helped to lower both the mortgage rates and the bond yields. The Federal Reserve is supposed to meet in the next week and there are hopes that the mortgage rates will remain low.

Last in November, 2008 the mortgage rates were more than 6 percent. During that time, the average 30-year fixed mortgage rate was 6.33 percent according to which $200,000 loan would have carried a monthly payment of $1,241.86. At present, the average mortgage rate is 4.32 percent and the monthly payment for the same type of loan is $992.09 which makes a difference of $249 per month.

According to the survey results, the interest rate on a 30-year FRM is 4.32 percent which fell down from 4.35 percent. The 15-year fixed rate is 3.44 percent which fell down from 3.48 percent. The 5/1 ARM is 3.07 percent which fell down from 3.10 percent. The national weekly mortgage survey of the Bankrate is being conducted on every Wednesday from the data that is offered by the top 10 banks.

The survey is harmonized by the weekly Rate Trend Index of the Bankrate according to which a board of mortgage experts forecasts in which way the mortgage rates are supposed to go in the coming seven days. On one hand, more than half of the mortgage experts seem to expect that the mortgage rates will remain unchanged where as on the other hand, 27 percent have foreseen a decline in the mortgage interest rate. However, an increase in the mortgage interest rate was foreseen by only 18 percent of the mortgage experts.

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