Mortgage rates fall to record lows

NEW YORK, Nov. 19 /PRNewswire-FirstCall/ -- The average conforming 30-year fixed mortgage rate fell to 5.06 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.

The average 15-year fixed mortgage was down to 4.48 percent while the larger jumbo 30-year fixed rate fell to 5.95 percent. Adjustable rate mortgages held somewhat steady, with the average 1-year ARM inching to 5.39 percent and the 5-year ARM holding firm at 4.58 percent.

Mortgage rates fell to new record lows, with these record low rates coming on the heels of homebuyer tax credits designed to bring consumer into the real estate marketplace. These rates also represent a golden opportunity for homeowners looking to refinance, either to reduce the rate on existing fixed rate loans or to get out of adjustable rate mortgages in favor of locking in low fixed rates. For homeowners owing more than their homes are currently worth, the Home Affordable Refinancing Program represents an opportunity to take advantage of low rates for eligible borrowers. Historically, mortgage rates don't stay at record levels for long, so even though rates are unlikely to spike, grabbing record low rates means borrowers should act with some urgency.

Mortgage rates are significantly lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 5.97 percent, meaning a $200,000 loan would have carried a monthly payment of $1,195.25. With the average rate now 5.06 percent, the monthly payment for the same size loan would be $1,080.99, a savings of $114 per month for a homeowner refinancing now.

SURVEY RESULTS

• 30-year fixed: 5.06% -- down from 5.19% last week (avg. points: 0.40)
• 15-year fixed: 4.48% -- down from 4.61% last week (avg. points: 0.34)
• 5/1 ARM: 4.58% -- down from 4.58% last week (avg. points: 0.30)

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.

Get a full analysis of this week's move in mortgage rates.

The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. Mortgage rates won't get any lower according to panelists, with 45 percent forecasting an increase and 55 percent predicting rates will remain more or less unchanged. None of the panelists expect rates to move lower over the next 30 to 45 days.

Read the full mortgage Rate Trend

See mortgage rates in your area.