Bankrate: Mortgage Rates Inch Higher
NEW YORK, May 25 /PRNewswire-FirstCall/ -- Fixed mortgage rates showed a
slight increase in the past week, with the average 30-year fixed rate
mortgage moving to 6.69 percent, according to Bankrate.com's weekly national
survey of large lenders, which remains 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 inched
higher to 6.31 percent. On larger loans, the average jumbo 30-year fixed
rate increased to 6.87 percent. Adjustable rate mortgages dipped this week.
The average 5/1 adjustable rate mortgage slipped to 6.27 percent, and the
average one-year ARM moved down to 5.90 percent.
Bankrate conducts its rate survey on Wednesdays, and last week, that fell on
the same day that the Consumer Price Index for April was released. It showed
that inflation was running higher than most investors had expected, and bond
traders overreacted, sending bond yields and mortgage rates higher. Those
rates and yields retreated a bit this week from that overreaction.
Enjoy the reprieve while you can. Most economists and mortgage bankers
expect rates to generally rise the rest of this year, with the usual spikes
and dips. The 30-year fixed has risen about half a point since January, and
the Mortgage Bankers Association's chief economist David Duncan predicts
that it will rise another 20 basis points or so by the end of the year.
Fixed mortgage rates have increased notably compared to one year ago. This
time last year, the average 30-year fixed mortgage rate was 5.72 percent,
meaning that the monthly payment on a loan of $165,000 was $959.75. Although
fixed mortgage rates have been up and down since, the average 30-year fixed
rate is now 6.69 percent, meaning the same loan originated now would carry a
payment of $1,063.61.
30-year fixed: 6.69% -- up from 6.67% from last week (avg. points: 0.36)
15-year fixed: 6.31% -- up from 6.3% last week (avg. points: 0.34)
5/1 ARM: 6.27% -- down from 6.35% last week (avg. points: 0.33)
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:
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.