Mortgage rates inch downward, Bankrate's weekly survey finds

NORTH PALM BEACH — Mortgage rates moved slightly lower this week, with the average conforming 30-year fixed mortgage rate at 6.29 percent compared to 6.31 percent a week ago, according to Bankrate.com's weekly national survey of large lenders.

The average 15-year fixed rate mortgage inched downward to 5.99 percent. The average jumbo 30-year fixed rate retreated to 7.03 percent. Adjustable mortgage rates were mixed, with the average one-year ARM sliding to 6.05 percent, and the average 5/1 ARM jumping to 6.22 percent.

Mortgage rates were little changed in the days leading up to this week’s Federal Open Market Committee's meeting on interest rates.

Tame inflation data gave the Fed  latitude to cut rates, but that won't necessarily translate into lower mortgage rates. In fact, mortgage rates increased in the days following the September Fed rate cut, a move that has since been reversed. The monthly employment report on Friday likely will be a bigger driver of mortgage rates than the Fed meeting.

Three months ago, the average 30-year fixed mortgage rate was 6.71 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,291.88. Now that the average conforming 30-year fixed rate is 6.29 percent, the same $200,000 loan carries a monthly payment of $1,236.64.

Survey results:

— 30-year fixed: 6.29 percent, down from 6.31% last week (avg. points: 0.38).

— 15-year fixed: 5.99 percent, down from 6.00 percent last week (avg. points: 0.34)

— 5/1 ARM: 6.22 percent, up from 6.12% last week (avg. points: 0.29)

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.