Empower Home Loans

NEW YORK, Jan 07, 2010 /PRNewswire via COMTEX/ —-

The average conforming 30-year fixed mortgage decreased this week to 5.26 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.

The average 15-year fixed mortgage fell to 4.67 percent while the larger jumbo 30-year fixed rate inched lower to 6.14 percent. Adjustable rate mortgages were mixed, with the average 3-year ARM rising to 4.80 percent and the 5-year ARM dropping to 4.74 percent.

Mortgage rates started off 2010 by breaking a streak of five weekly increases. Optimism about the economy was the driving force behind December’s increase in mortgage rates, and heightened demand for the now higher-yielding mortgage-backed and government issued debt helped bring rates lower this week. Mortgage rates are closely related to yields on long-term Treasury securities and mortgage-backed bonds. The risks are clearly tilted toward higher mortgage rates in 2010 as continued improvement in the economy and a return to job growth are both consistent with higher – not lower – mortgage rates.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.26 percent, the monthly payment for the same size loan would be $1,105.65, a savings of $136 per month for a homeowner refinancing now.

Look at rates from an objective view over the course of the last 5 years. You will see a trend to follow that makes todays move more important.

Historical Mortgage Rates

30-year fixed: 5.26% — down from 5.33% last week (avg. points: 0.43)

15-year fixed: 4.67% — down from 4.73% last week (avg. points: 0.43)

5/1 ARM: 4.74% — down from 4.77% last week (avg. points: 0.40)

For a full analysis of this week’s move in mortgage rates, go to http://www.empowerhomeloans.com/

To learn more of historical mortgage rates and where they are headed, follow this link.

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This entry was posted on Sunday, January 24th, 2010 at 10:46 am and is filed under First Time Home Buyer, Home Loans, Mortgage, Mortgage News, Mortgage Tips, Personal Finance, Refinance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.