Bankrate.com reports the 30-year fixed mortgage rate has retreated to 4.00 percent, the lowest level since late spring, with an average of 0.26 discount and origination points. At the current rate, the monthly payment on a $200,000 loan would be $954.83.
The 15-year fixed mortgage rate also fell, decreasing to 3.18 percent, along with the larger jumbo 30-year fixed mortgage rate, which dropped to 3.89 percent. Adjustable-rate mortgages (ARM) were also on the downswing – the five-year ARM slid to 3.19 percent, and the seven-year ARM sunk to 3.38 percent.
According to Bankrate.com, mortgage rates were the beneficiaries of increased jitters about the health of the global economy following the Federal Open Market Committee’s latest meeting. When the Fed opted not to initiate interest rate hikes, it sparked uneasiness in financial markets; nervous investors typically flock to safe-haven U.S. government bonds, to which mortgage rates are closely related.
Published with permission from RISMedia.