Pearland Real Estate Expert

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Mortgage Rates Fall 6 Weeks in a Row

May 19, 2011 /PRNewswire/ -- Mortgage rates dropped again, with the benchmark conforming 30-year fixed mortgage rate falling to 4.77 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.4 discount and origination points.

 

The average 15-year fixed mortgage pulled back to 3.95 percent and the larger jumbo 30-year fixed rate retreated to 5.22 percent. Adjustable rate mortgages established new lows, with the average 5-year ARM sinking to 3.48 percent and the 7-year ARM settling at 3.73 percent.  

 

Loss of momentum in the economic recovery, and worries that the economy could slow further once the Fed stops pumping money into the markets via bond purchases, has investors nervous. Nervous investors are usually good news for mortgage shoppers, as they gravitate into safe-haven Treasury securities to which mortgage rates are closely related. This has helped keep fixed mortgage rates at historic lows and within striking distance of the all-time lows that were established in November 2010.

 

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed 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 4.77 percent, the monthly payment for the same size loan would be $1,045.71, a difference of $196 per month for anyone refinancing now.

 

SURVEY RESULTS

30-year fixed: 4.77% -- down from 4.82% last week (avg. points: 0.4)

15-year fixed: 3.95% -- down from 4.00% last week (avg. points: 0.34)

5/1 ARM: 3.48% -- down from 3.52% last week (avg. points: 0.39)

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.

 

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. This week, 39 percent of the panelists expect mortgage rates to rise, while 44 percent predict mortgage rates will remain more or less unchanged. Just 17 percent forecast further declines in the coming week.

 

SOURCE: BANKRATE.COM

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Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/. And for all of your Pearland, TX and Northern Brazoria and Galveston County real estate needs, please visit my site at: http://www.danfrankrealty.com. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.


Remember, Danny Frank is a local Pearland, TX Real Estate expert! You can see my entire blog at:  
http://www.pearlandrealtyblog.com

 

 
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Comment balloon 2 commentsDanny Frank • May 21 2011 10:10AM

Comments

hi Danny' I'm back and ready to post again. hope you are doing well

Posted by Elizabeth Arduain, Lubbock Texas Real Estate (The Diamond Group @ Keller Williams) over 7 years ago

Danny, this is good news for consumers and real estate agents. Low rates keep housing affordable.

Sharon

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) over 7 years ago

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