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Mortgage Rates Drop This Week

Mortgage rates plunged this week as the debt ceiling deal was overshadowed by fear of a second recession in the United States and the threat of another global financial crisis.

The benchmark 30-year fixed-rate mortgage fell 20 basis points this week, to 4.54%, according to the national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week’s survey had an average total of 0.39 discount and origination points. One year ago, the mortgage index was 4.66%; four weeks ago, it was 4.79%.

The benchmark 15-year fixed-rate mortgage fell 15 basis points, to 3.68%. The benchmark 5/1 adjustable-rate mortgage fell 11 basis points, to 3.23%.

This is the lowest rate on the 30-year fixed in more than eight months. In Bankrate’s survey from Nov. 22, 2010, the 30-year fixed was 4.58%. Prior to that, on Nov. 3, 2010, the rate was 4.42%, which ties the record low in the nearly 26-year history of Bankrate’s weekly mortgage rate survey, which was set two weeks prior, on Oct. 20, 2010.

Written by Keith Byrd - Go to Keith's Website/Profile