Bankrate: Mortgage Rates Hit 4th Record in a Row!

/PRNewswire/ -- Mortgage rates moved lower this week, with the average conforming 30-year fixed mortgage rate hitting another record low of 4.57 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.48 discount and origination points.

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

The average 15-year fixed mortgage retreated to 4.06 percent, and the larger jumbo 30-year fixed rate dropped to 5.27 percent, both record lows. Adjustable rate mortgages were mixed, with the average 3-year ARM nosing higher to 4.18 percent and the average 5-year ARM dipping to 3.92 percent.

The latest decline in mortgage rates followed a poor jobs report for July and the Federal Reserve's announcement about reinvesting bond proceeds in order to juice the economy. By reinvesting in more government bonds, the Fed aims to keep rates near these ultra-low levels. But low rates alone won't revive the housing market as would-be borrowers remain worried about job loss, don't have equity in their homes, or lack sufficient money for a downpayment.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average 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 4.57 percent, the monthly payment for the same size loan would be $1,021.71, a savings of $220 per month for a homeowner refinancing now.

SURVEY RESULTS
30-year fixed: 4.57% -- down from 4.66% last week (avg. points: 0.48)
15-year fixed: 4.06% -- down from 4.11% last week (avg. points: 0.42)
5/1 ARM: 3.92% -- down from 3.95% last week (avg. points: 0.28)

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.

For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/.

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Nearly half of the panelists, 47 percent, say mortgage rates aren't headed anywhere and will remain more or less unchanged. But 40 percent forecast still lower mortgage rates and just 13 percent predict mortgage rates will rise in the next week.

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30-Year Mortgage Rates Continue to Fall Across the Board

/PRNewswire/ -- The weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for thirty-year mortgages remained relatively steady last week. Last week's rate was 5.05 percent, down slightly from 5.07 percent the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate Web site Zillow.com(R). Meanwhile, rates for 15-year fixed mortgages fell to 4.70 percent, down from 4.72 percent and 5-1 adjustable rate mortgages decreased significantly, down to 4.30 percent from 4.38 percent the week prior.

Mortgage Type Average Rate Average Rate
Week ending 5/3/09 Week ending 4/26/09 % Change
30-year fixed 5.05% 5.07% -0.4%
15-year fixed 4.70% 4.72% -0.4%
5-1 ARM 4.30% 4.38% -1.8%

Rates for 30-year fixed purchase mortgages remained flat on Monday, with the average rate on Zillow Mortgage Marketplace at 5.05 percent. For current, up-to-the-minute rates, visit www.zillow.com/Mortgage_Rates/.

Thirty-year fixed mortgage rates varied by state. Oregon mortgage rates, Florida mortgage rates, Colorado mortgage rates, New Jersey mortgage rates and Washington mortgage rates decreased the most, down from 5.11 percent to 5.04 percent in Oregon, from 5.01 percent to 4.98 percent in Florida, from 5.07 percent to 5.04 percent in Colorado, from 5.09 percent to 5.06 percent in New Jersey and from 5.05 percent to 5.02 percent in Washington. Florida mortgage rates (4.98%) and Georgia mortgage rates (4.99%) were the lowest in the country, while Ohio mortgage rates (5.16%) were the highest. California mortgage rates were the most requested among all states.

The Zillow Mortgage Rate Monitor is compiled each week using thousands of mortgage rates quoted on Zillow Mortgage Marketplace by mortgage lenders to borrowers who have submitted loan requests. State-level data is gathered for the top 20 states with the highest quote volume on Zillow.

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Fannie Mae Refinancing Volume Jumps to $41 Billion in February

/PRNewswire-FirstCall/ -- Fannie Mae (NYSE:FNM) announced on Wednesday that the company's refinancing volume jumped to more than $41 billion in February, nearly three times the refinancing volume the company experienced during the month of January and the largest refinancing volume in nearly a year.

"Borrowers are increasingly taking advantage of the low mortgage rates available in the market today," said Tom Lund, Executive Vice President, Single-Family Mortgage Business. "We anticipate that volumes will increase even more as millions of additional homeowners become eligible to refinance under the President's Making Home Affordable plan. Providing broader access to affordable, sustainable mortgages through expanded refinancing opportunities is a critical part of preventing future foreclosures and hastening recovery."

The company also disclosed that more than 100,000 borrowers have accessed its online mailbox to inquire about their eligibility for refinancing under the Obama Administration's refinancing plan, and about 50,000 callers have contacted Fannie Mae's national hotline since the plan was announced. In addition, today the company launched a new online look-up tool on the company's Web site (www.fanniemae.com) that will allow borrowers to quickly determine if they have a Fannie Mae-held mortgage -- a determining factor in whether a borrower is eligible for the program.

Home Affordable Refinance

Fannie Mae launched its Home Affordable Refinance initiative earlier this month as part of the President's Making Home Affordable plan. Key features include:

-- Additional Flexibilities: Most borrowers refinancing an existing
Fannie Mae loan will not be required to buy new or additional mortgage
insurance if the loan at the time of the refinance is more than 80
percent of the home's value. Existing mortgage insurance must be
carried forward to the new loan. In addition, Fannie Mae can
refinance loans up to 105 percent of a home's value with this new
flexibility, so even borrowers who are "underwater" -- who owe more
than their home is worth -- may be able to refinance. This will
expand the number of borrowers able to take advantage of lower
interest rates that reduce monthly payments, or refinance into a more
sustainable mortgage.

-- Streamlined Processing: Beginning April 4, all 1,600 lenders and
29,000 mortgage brokers using Fannie Mae's Desktop Underwriter(R)
platform will be able to process an application to refinance any
existing Fannie Mae loan, allowing for greater lender origination
capacity, more consumer choice and easier refinancing for borrowers.

What Borrowers Need to Know:
-- To qualify, your mortgage loan must be owned by Fannie Mae.
-- You must have a solid payment history on your existing mortgage.
-- The expanded refinance flexibility ends in June 2010.


Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

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