Bankrate: Mortgage Rates Decline

NEW YORK, April 12, 2012 /PRNewswire/ -- Mortgage rates drop this week, with the average rate on the benchmark 30-year fixed mortgage rate sliding to 4.11 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.40 discount and origination points.

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To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage rate fell to 3.32 percent, and the jumbo 30-year fixed mortgage fell to 4.63 percent. Adjustable mortgage rates were also down, with the average 5-year ARM slipping to 3.03 percent and the 10-year rate moving to to 3.55 percent. 

Mortgage rates dropped sharply, spurred by a disappointing report on job growth for the month of March. News that the U.S. economy added just 120,000 jobs renewed fears of whether the economic recovery will be sustained. Add to that the ongoing European debt issues and forecasts for slower growth in corporate earnings, and you have the recipe for lower mortgage rates. Mortgage rates are closely related to yields on long-term government bonds.

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 4.11 percent, the monthly payment for the same size loan would be $967.56, a difference of $247 per month for anyone refinancing now.

SURVEY RESULTS

30-year fixed: 4.11% -- down from 4.25% last week (avg. points: 0.40)15-year fixed: 3.32% -- down from 3.42% last week (avg. points: 0.38)5/1 ARM: 3.03% -- down from 3.15% last week (avg. points: 0.32)

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