According to Bankrate.com’s weekly national survey, mortgage rates fell to their lowest level of the year, with the benchmark 30-year fixed mortgage rate now at 3.97%. This is the first time the rate has been below 4% since last November.
The average 15-year fixed mortgage rate dipped to 3.2%, while the average five-year ARM (3.47%) is also modestly lower than a week ago, as is the average 30-year jumbo (3.99%).
Despite economic growth that was stronger than expected in the second quarter, mortgage rates have been in a modest downtrend over the past two months, the company says. The culprits have alternated between low inflation readings, reduced expectations for additional rate hikes by the Fed this year and the on again/off again spats with North Korea.
With mortgage rates moving below 4%, this is a key threshold for homeowners that missed the refinancing opportunity in 2016. Lower mortgage rates also ease the pressure of monthly payments for would-be home buyers.
At the current average 30-year fixed mortgage rate of 3.97%, the monthly payment for a $200,000 loan is $951.37.