NEW YORK, March 31, 2016 -- Mortgage rates continued to decline this week, with the benchmark 30-year fixed mortgage rate slipping to 3.83 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.17 discount and origination points.
The larger jumbo 30-year fixed dropped to 3.76 percent, and the average 15-year fixed mortgage retreated to 3.09 percent. Adjustable mortgage rates were on the downswing also, with the 5-year ARM sliding to 3.28 percent and the 7-year ARM dipping to 3.45 percent.
Mortgage rates pulled back sharply following weak consumer spending figures and a speech by Fed Chair Janet Yellen that took a very cautious tone about further interest rate increases. The prospect of short term interest rates remaining lower for longer helped bring long term interest rates lower as well. Longer term rates, such as the 10-year Treasury note yield to which mortgage rates are closely related, are a reflection of where interest rates are expected to be in the future. The Fed's tentative approach to interest rates is outweighing the recent uptick in inflation indicators and otherwise solid economic fundamentals, putting a downward influence on mortgage rates.
At the current average 30-year fixed mortgage rate of 3.83 percent, the monthly payment for a $200,000 loan is $935.33. An analysis of the mortgage market from Bankrate can be accessed here.