I'm Greg McBride, senior financial analyst with Bankrate.com, and here is your weekly look at mortgage rates.
Mortgage rates declined for a second week in a row, with the benchmark 30-year fixed mortgage rate pulling back to 4.66 percent. The larger jumbo 30-year fixed rate dropped to 4.77 percent. With the spread between the smaller conforming and larger jumbo 30-year rates at a just a bit over one-tenth of a percentage point, this is the narrowest point ever.
Adjustable mortgage rates were lower across the board. The popular five-year adjustable sank to 3.55 percent, while the 10-year ARM retreated to 4.2 percent. With the gap between fixed and adjustable rates having grown, some borrowers are now turning to adjustable-rate loans. If this is a desperate grab at affordability, then it's a mistake.
Mortgage rates have been down for two weeks in a row, and with the Federal Reserve deciding not to start scaling back their stimulus, this will keep a lid on mortgage rates for the time being. However, once the tapering inevitably starts, mortgage rates will likely resume the upward climb.
Regardless of whether mortgage rates are moving up or down, shopping around for the best mortgage terms is a surefire way to save money. To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com.
I'm Greg McBride.