The rate on the most common type of mortgage set a record low this week, as investors were hit with more bad economic news. The super-low rates may become the new norm, mortgage analysts say.
The benchmark 30-year fixed-rate mortgage fell 4 basis points this week, to 4.41 percent, according to the Bankrate.com 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 0.43 discount and origination points. One year ago, the mortgage index was 4.59 percent; four weeks ago, it was 4.74 percent.
The benchmark 15-year fixed-rate mortgage rose 5 basis points, to 3.63 percent. The benchmark 5/1 adjustable-rate mortgage fell 3 basis points, to 3.12 percent.
This is the lowest rate on the 30-year fixed since Bankrate started the weekly mortgage survey in September 1985. The previous record was 4.42 percent. Rates reached that level on Oct. 20, 2010, and Nov. 3, 2010.
The 5/1 ARM rate hit a record low this week. The adjustable rate hit a previous record last week when it reached 3.15 percent