Mortgages
- 4.29% (30-year fixed)
- 0.41 (average points)
Mortgage rates dropped again this week, as the Federal Reserve announced the much anticipated Operation Twist, which analysts say should help keep rates low for now.
The 30-year fixed-rate mortgage fell 3 basis points, to 4.29 percent. A basis point is one-hundredth of 1 percentage point. This is the lowest rate level the fixed rate has reached since Bankrate started the weekly mortgage survey 26 years ago. The rate hit a previous record last week, when it reached 4.32 percent.
The 15-year fixed-rate fell 2 basis points to 3.42 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, was 4.85 percent, up 2 basis points from last week's rate.
The 5/1 ARM fell 2 basis points to 3.05 percent. With a 5/1 ARM, the rate is fixed for five years and adjusted annually thereafter.
The volume of mortgage applications barely changed last week, increasing by about 0.6 percent from one week earlier, according to the Mortgage Bankers Association weekly survey.