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Mortgage rates started out 2014 by pulling back, helped by a few down sessions in the stock market. This week's decline largely unwinds the increase in mortgage rates seen in the last week of 2013. Mortgage rates are closely related to yields on long-term government bonds, so as those bond yields move up and down, mortgage rates typically follow.
On May 1, 2013, the average 30-year fixed mortgage rate was 3.52 percent. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.64 percent, the monthly payment for the same size loan would be $1,030.08, a difference of almost $130 per month for anyone that waited too long.
Findings:
30-year fixed: 4.64 percent - down from 4.69 percent last week (avg. points: 0.34)
15-year fixed: 3.69 percent - down from 3.73 percent last week (avg. points: 0.25)
5/1 ARM: 3.46 percent - down from 3.52 percent last week (avg. points: 0.26)
Published with permission from RISMedia.
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