Bankrate: Mortgage Rates Nudge Higher
NEW YORK, May 4 /PRNewswire-FirstCall/ -- Fixed mortgage rates jogged higher in the past week, with the average 30-year fixed rate mortgage rising from 6.64 percent to 6.67 percent, according to Bankrate.com's weekly national survey of large lenders. This is the highest since the week of June 12, 2002. The 30-year fixed rate mortgages in this week's survey had an average of 0.36 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing stepped up to 6.29 percent. On larger loans, the average jumbo 30-year fixed rate was unchanged at 6.83 percent. Adjustable rate mortgages inched higher as well. The average 5/1 adjustable rate mortgage ticked up to 6.32 percent, and the average one-year ARM nosed higher to 5.89 percent.
Mortgage rates bobbed up and down in the past week, initially declining following Fed Chairman Ben Bernanke's report before the Congressional Joint Economic Committee. Bernanke's mention of a potential pause in interest rate hikes buoyed spirits that the Fed might not raise rates as much as expected. But that likelihood was reconsidered once Bernanke remarked that he had misinterpreted, and was merely mentioning the possibility of a pause. Rates then moved back up, with the ten year Treasury yield rising to 5.15 percent as Bernanke reiterated that further Fed action will be data dependent. Mortgage rates are closely related to yields on long-term government bonds.
Fixed mortgage rates have increased notably compared to one year ago. This time last year, the average 30-year fixed mortgage rate was 5.81 percent, meaning that the monthly payment on a loan of $165,000 was $969.19. Although fixed mortgage rates have been up and down since, the average 30-year fixed rate is now 6.67 percent, meaning the same loan originated now would carry a payment of $1,061.43. Fixed mortgage rates remain an attractive refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.
SURVEY RESULTS
30-year fixed: 6.67% -- up from 6.64% last week (avg. points: 0.36) 15-year fixed: 6.29% -- up from 6.27% last week (avg. points: 0.36) 5/1 ARM: 6.32% -- up from 6.31% last week (avg. points: 0.38)
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, the panelists are split, with 43 percent expecting rates to rise further and an equal 43 percent predicting no change in rates. The remaining 14 percent say rates will decline from current levels over the next 30 to 45 days.
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 4,800 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.
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