Ask Mike A Mortgage Question: Mortgage Rates Return to Record Low Territory

RISMEDIA, November 9, 2010–Mortgage rates revisited record lows this week, with the average rate on the benchmark conforming 30-year fixed mortgage rate returning to 4.42 percent, according to www.bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

The average 15-year fixed mortgage hit a new low of 3.81 percent, and the larger jumbo 30-year fixed rate did as well, sinking to 5.04 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM falling to 3.57 percent and the average 7-year ARM retreating to 3.87 percent.

Mortgage rates fell back into record low territory this week. The Federal Reserve has announced another injection of $600 billion over the next 8 months, but it remains to be seen if this is enough to push Treasury yields and mortgage rates lower, and if so, by how much. Even if the Fed is successful in pushing rates lower, it doesn’t alter the fact that many would-be borrowers are upside-down, living on a reduced income, or concerned about a lack of job security.

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 4.42 percent, the monthly payment for the same size loan would be $1,003.89, a savings of $238 per month for a homeowner refinancing now.

SURVEY RESULTS
— 30-year fixed: 4.42% — down from 4.51% last week (avg. points: 0.37)
— 15-year fixed: 3.81% — down from 3.90% last week (avg. points: 0.28)
— 5/1 ARM: 3.57% — down from 3.67% last week (avg. points: 0.34)

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. Adopted From /southsidehousingalliance.com

Reel Free Classifieds

$60 Pets Call: 317-327-1397

• Beagle Mix - sweet little girl. Tulip is a 4-year-old adult. Good with other dogs. Pet ID: A080350


• Boston Terrier/Boxer Mix - Felix is a playful pooch (2 years old) Pet ID: A154833.


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Reel Deals

• DRYER , GE, electric, real nice, must see, $99. will de liver. (317) 281-2044 or (317) 664-3162


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Indy Events

• Drumstick Dash Fundraising Event in Broad Ripple. November 25, 2010, 9:00 AM.A 4.5 mile run/walk and 2.5 mile short course. Proceeds benefit Wheeler Mission. $25 until Nov. 22, then $30. Call 317-635-3575.


• St. Nikolaus 5K Lauf at The Athenaeum.December 4, 2010, 9:30 AM. A 5K run and walk for Riley Children's Hospital and other area charities, co-sponsored by the Athenaeum Foundation and the Indiana German Heritage Society. $23 with shirt ($20 no shirt). Call 317-655-2755.


• Franklin's 'Hometown Holiday' in Johnson County. Saturday, December 4, 2010, 8:00 AM. An all-day event featuring choral performances, carriage rides, courthouse tree lighting, 'Elves with Bells' Kids Run, Santa at the museum, holiday lighting parade, and more. Info: See Web site below or call 317-736-3602.