Logout
Click here for Pulp & Paper Radio International
The Paperitalo Library
Free Downloads
Search
My Profile
Login
Bankrate: Mortgage Rates in Holding Pattern
Print
Bankrate: Mortgage Rates in Holding Pattern

NEW YORK, May 11 /PRNewswire-FirstCall/ -- Fixed mortgage rates were
unchanged in the past week, with the average 30-year fixed rate mortgage
remaining at 6.67 percent, according to Bankrate.com's weekly national
survey of large lenders. This is still the highest since the week of June
12, 2002. The 30-year fixed rate mortgages in this week's survey had an
average of 0.35 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing inched
higher to 6.3 percent. On larger loans, the average jumbo 30-year fixed rate
increased to 6.86 percent. Adjustable rate mortgages climbed again this
week. The average 5/1 adjustable rate mortgage rose to 6.35 percent, and the
average one-year ARM moved up to 5.92 percent.

While a sixteenth interest rate hike was a foregone conclusion, mortgage
rates hovered on the uncertainty of whether the Federal Open Market
Committee would indicate a likely pause at its next meeting in June, or an
intent to continue raising interest rates. The post-meeting statement issued
by the Fed was noncommittal, with the Fed leaving its options open. The Fed
said that further interest rate hikes "may yet be needed to address
inflation risks" but also mentioned how dependent their course will be on
incoming economic data. Long-term bond yields were little changed in the
week leading up to the FOMC meeting, and in the hours following the Fed's
announcement. 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 5.84 percent,
meaning that the monthly payment on a loan of $165,000 was $972.35. 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% -- unchanged from last week (avg. points: 0.35)
15-year fixed: 6.3% -- up from 6.29% last week (avg. points: 0.36)
5/1 ARM: 6.35% -- up from 6.32% last week (avg. points: 0.37)



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

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.
 

Related Articles:


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: