The benchmark 30-year fixed-rate mortgage tumbled 7 basis points this week to 3.77 percent, according to Bankrate’s weekly national survey of large lenders.
This drop in rates comes ahead of next week’s first Federal Open Market Committee (FOMC) meeting of the year, where the Fed is expected to leave rates unchanged. Experts are eyeing the bond markets for signs of mortgage-rate movement, but rates have been in a narrow range for several months. This is good news for homebuyers and refinancers, alike.
“Even with more positive developments surrounding the U.S. and China trade negotiations and healthy retail sales data, investors seemed cautious and maintained their demand for safer U.S. Treasuries, which kept yields lower,” says Joel Kan, associate vice president of economic and industry forecasting for the Mortgage Bankers Association (MBA), in a statement. “Our expectation is that rates will stay along this same narrow range.”
Applications slip on the back of a strong start to 2020
The first couple of weeks of 2020 showed positive signs for homebuying as purchase applications surged. But now, in the third week of January, applications slipped 1.2 percent from last week, according to data from the MBA’s Weekly Mortgage Applications Survey for the week ending January 17, 2020.
The Refinance Index fell 2 percent from a week ago, but was still 116 percent higher than the same week last year.
“Mortgage applications dipped slightly last week after two weeks of healthy increases, but even with a slight decline, the total pace of applications remains at an elevated level,” Kan says. “The purchase market has started 2020 on a strong note, running 8 percent higher than the same week a year ago.”
Mortgage rates this week
The benchmark 30-year fixed-rate mortgage tumbled 7 basis points this week to 3.77 percent. A year ago, it was 4.62 percent. Four weeks ago, the rate was 3.90 percent. The 30-year fixed-rate average for this week is 0.85 percentage points below the 52-week high of 4.62 percent and is 0.03 percentage points above the 52-week low of 3.74 percent.
The 30-year fixed mortgages in this week’s survey had an average total of 0.32 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 4.07 percent. This week’s rate is 0.30 percentage points lower than the 52-week average.
- The 15-year fixed-rate mortgage fell to 3.11 percent from 3.16 percent.
- The 5/1 adjustable-rate mortgage fell to 3.56 percent from 3.60 percent.
- The 30-year fixed-rate jumbo mortgage fell to 3.77 percent from 3.82 percent.
At the current 30-year fixed rate, you’ll pay $464.25 each month for every $100,000 you borrow, down from $468.24 last week.
At the current 15-year fixed rate, you’ll pay $695.88 each month for every $100,000 you borrow, down from $698.30 last week.
At the current 5/1 ARM rate, you’ll pay $452.40 each month for every $100,000 you borrow, down from $454.65 last week.
Results of Bankrate.com’s weekly national survey of large lenders conducted January 22, 2020 and the effect on monthly payments for a $165,000 loan:
| Breakdown | 30-year fixed | 15-year fixed | 5-year ARM |
|---|---|---|---|
| This week’s rate: | 3.77% | 3.11% | 3.56% |
| Change from last week: | -0.07 | -0.05 | -0.04 |
| Monthly payment: | $766.01 | $1,148.21 | $746.46 |
| Change from last week: | -$6.58 | -$3.99 | -$3.70 |
| Loan Type | Purchase Rates | Refinance Rates |
|---|---|---|
| The table above links out to loan-specific content to help you learn more about rates by loan type. | ||
| 30-Year Loan | 30-Year Mortgage Rates | 30-Year Refinance Rates |
| 20-Year Loan | 20-Year Mortgage Rates | 20-Year Refinance Rates |
| 15-Year Loan | 15-Year Mortgage Rates | 15-Year Refinance Rates |
| 10-Year Loan | 10-Year Mortgage Rates | 10-Year Refinance Rates |
| FHA Loan | FHA Mortgage Rates | FHA Refinance Rates |
| VA Loan | VA Mortgage Rates | VA Refinance Rates |
| ARM Loan | ARM Mortgage Rates | ARM Refinance Rates |
