Each issue of PaperMoney is approximately 500 fact filled pages.
Logout
Click here for Pulp & Paper Radio International
Items just for you
New publication added! Advertising Arguments 2015 book
Free Downloads
Search
My Profile
Login
Management Side
Technical Side
Bankrate: Mortgage Rates Dip Following Fed Announcement
Print
New York, New York, USA, 06 July 2006 -- /PRNewswire/ -- After rising for three consecutive weeks, fixed mortgage rates took a breather in the immediate aftermath of the Federal Reserve's June 29th interest rate hike. The average 30-year fixed rate mortgage slid to 6.91% from 6.93% the day before last week's Fed announcement. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.31 discount and origination points.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )

The average 15-year fixed rate mortgage popular for refinancing sank to 6.54%. On larger loans, the average jumbo 30-year fixed rate remains above the 7% threshold, at 7.06%. Adjustable rate mortgages were mixed. The average 5/1 adjustable rate mortgage fell to 6.55%, and the average one-year ARM increased to 6.11%.

Mortgage rates backpedaled following the Fed's 29 June statement, which was initially perceived as carrying a much softer tone than in previous months. As a result, yields on ten-year Treasury notes gave ground, with mortgage rates following suit. Mortgage rates are closely related to yields on long-term government bonds. But following the July 4 holiday, rates perked up on a rosy prediction of June job growth, though not enough to erase the decline late last week. Over the next couple of weeks, any combination of strong job growth and continued inflation worries will prime the pump or an August Fed hike -- and push mortgage rates higher.

Fixed mortgage rates moved up notably in the first half of the year. As 2005 came to a close, the average 30-year fixed mortgage rate was 6.28%, meaning that the monthly payment on a loan of USD 165,000 was USD 1019.16. With the average 30-year fixed rate now 6.91%, the same loan originated today would carry a payment of USD 1087.79. Despite recent increases, fixed mortgage rates remain an attractive refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.

SURVEY RESULTS

30-year fixed: 6.91% -- down from 6.93% last week (avg. points: 0.31)
15-year fixed: 6.54% -- down from 6.57% last week (avg. points: 0.3)
5/1 ARM: 6.55% -- down from 6.59% last week (avg. points: 0.32)



Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates

The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. This week, respondents overwhelmingly expect mortgage rates to keep rising, with 84 percent in that camp. The remaining 16 percent forecast that rates will remain unchanged in the next 30 to 45 days. Interestingly, no one predicts mortgage rates to fall during that time.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI

About Bankrate, Inc.


Bankrate, Inc. (NASDAQ:RATE) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. It is the leading aggregator of more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4800 financial institutions in 575 markets in 50 states. In 2005, Bankrate.com had over 46 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (NASDAQ:YHOO), America Online (NYSE:TWX), The Wall Street Journal (NYSE:DJ) and The New York Times (NYSE:NYT). Bankrate.com's information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate, Inc. also owns and operates FastFind, an Internet lead aggregator and MMIS/Interest.com, which publishes mortgage guides and financial rates and information.


Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: