After falling in each of the past eight weeks and setting new record lows for 5 consecutive weeks, mortgage rates were higher this week. Optimism that Europe can avoid a full-blown financial meltdown gave markets a boost, and that resulted in mortgage rates moving up. But with the backdrop of a weak U.S. economy, slower growth around the globe, and the Federal Reserve reinvesting in mortgage-backed bonds, mortgage rates are destined to stay low in the months ahead.
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 4.30 percent, the monthly payment for the same size loan would be $989.74, a difference of $252 per month for anyone refinancing now.
30-year fixed: 4.30% - up from 4.29% last week (avg. points: 0.37)
15-year fixed: 3.47% - up from 3.42% last week (avg. points: 0.35)
5/1 ARM: 3.13% - up from 3.05% last week (avg. points: 0.42)