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Friday, April 5, 2013

Mortgage Rates Tumble for 3rd Consecutive Week

Fixed mortgage rates retreated after some lukewarm economic reports, with the benchmark 30-year fixed mortgage rate pulling back to 3.73%, according to Bankrate’s weekly national survey.

The average 30-year fixed mortgage has an average of 0.3 discount and origination points.

The average 15-year fixed mortgage rate dipped to 2.95% (avg. points: 0.30), while the larger jumbo 30-year fixed mortgage fell to 4.07% (avg. points: 0.30).

The 5-year ARM inched up to 2.72% (avg. points: 0.24).

Following the events in Cyprus and now some uninspiring economic data here in the United States, mortgage rates have pulled back for three consecutive weeks to the lowest levels in a month. But jobs are the next likely catalyst for mortgage rates, as the monthly jobs report supplants all other economic data in taking the temperature of the economy, particularly with the Fed specifically citing the unemployment rate as a key marker in their monetary policy.

The last time mortgage rates were above 5% was Apr. 2011. At the time, the average 30-year fixed rate was 5.07%, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate currently at 3.73%, the monthly payment for the same size loan would be $923.96, a difference of $158 per month for anyone refinancing now.

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