Mortgage rates fall slightly, survey finds

NORTH PALM BEACH — Mortgage rates fell slightly this week, with the average conforming 30-year fixed mortgage rate now 6.32 percent.

According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.34 discount and origination points.

The average 15-year fixed rate slipped to 5.98 percent. The average jumbo 30-year fixed rate, however, to 7.15 percent. Adjustable mortgage rates were mixed, with the average one-year ARM decreased to 6.04 percent, and the average 5/1 ARM rose to 6.19 percent.

Mortgage rates were little changed in the past week despite turbulence in financial markets and concerns about mortgage write-downs. Fixed mortgage rates are closely related to yields on long-term government bonds, so typically when bond yields decline, mortgage rates follow suit.

That relationship has been disrupted in the past couple weeks, as investors place greater emphasis on risk-free Treasury securities and command higher returns on mortgage-backed bonds.

This decoupling of government bonds and mortgage rates was evident when bond yields declined but mortgage barely budged.

Three months ago, the average 30-year fixed mortgage rate was 6.68 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,287.90. At 6.32 percent, the same $200,000 loan carries a monthly payment of $1,240.55.

Survey results:

 — 30-year fixed: 6.32 percent, down from 6.34 percent last week (avg. points: 0.34).

— 15-year fixed: 5.98 percent, down from 6.04 percent last week (avg. points: 0.33).

— 5/1 ARM: 6.19 percent,  up from 6.18 percent last week (avg. points: 0.28).

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.