Bankrate: Mortgage Rates in Holding Pattern
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.
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