A weak reading on first quarter economic growth, an uptick in filings for unemployment, and worries that higher gasoline prices have started to take a bite out of consumer spending, had investors moving back into what is known as the safe-haven trade. When investors get nervous they rotate into safe haven government bonds, to which mortgage rates are closely related. The downswing in government bond yields had a corresponding benefit on mortgage rates.
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 4.88 percent, the monthly payment for the same size loan would be $1,059.02, a difference of $182 per month for anyone refinancing now.
30-year fixed: 4.88% - down from 4.95% last week (avg. points: 0.35)
15-year fixed: 4.05% - down from 4.14% last week (avg. points: 0.35)
5/1 ARM: 3.56% - down from 3.69% last week (avg. points: 0.36)