Mortgage rates posted a sharp decline, with the benchmark conforming 30-year fixed mortgage rate falling to 4.91%, according to Bankrate.com’s weekly national survey. The average 15-year fixed mortgage dropped to 4.12%, and the larger jumbo 30-year fixed rate retreated to 5.46%. Adjustable rate mortgages were mostly lower also, with the average 5-year ARM sinking to 3.74% and the 7-year ARM pulling back to 4.10%.
Mortgage rates fell below the 5% mark for the first time in nearly two months. While mortgage rates had been lower in three of the past four weeks owing to concerns about Middle East tensions and the potentially negative economic consequences of higher oil prices, it was the unfolding tragedy in Japan that produced this week’s movement. Concerns among investors about slower global growth stemming from the devastating earthquake and tsunami in Japan, have investors seeeking security in U.S. Treasuries, helping to drive mortgage rates lower. Mortgage rates are closely related to yields on long-term government bonds.
