Bankrate: Mortgage Rates Nudge Higher
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Fixed mortgage rates inched upward for the third week in a row, with the average conforming 30-year fixed mortgage rate rising to 6.16 percent. According to Bankrate.com’s weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.36 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing is now 5.71 percent, while the average jumbo 30-year fixed rate nosed up to 7.35 percent. Adjustable mortgage rates were no exception, with the average 5/1 ARM rising to 5.96 percent while the average 1-year ARM soared to 6.96 percent.
The turmoil that was so prevalent in credit markets earlier in the year has given way to smoother waters in recent weeks. Accordingly, fixed mortgage rates have been comparatively placid in contrast to the wild gyrations seen during the first quarter. Mortgage rates are closely related to yields on long-term government bonds. Short of a crisis in the credit markets, the Federal Reserve is expected to hold off from further interest rate cuts. But mortgage rates could still be volatile in the weeks ahead. Additional signs of economic weakness, such as another poor employment report for April, would likely push mortgage rates down. Inflation is a risk as well, and could propel rates higher in the weeks ahead.
Mortgage rates have been on a wild ride since the beginning of the year. The average 30-year fixed mortgage rate was as low as 5.57 percent in January, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38. In February, the average 30-year fixed rate got as high as 6.41 percent, which meant the same $200,000 loan would have carried a monthly payment of $1,252.32. Today, with the average rate at 6.16 percent, a $200,000 loan would mean a monthly payment of $1,219.75.
SURVEY RESULTS
30-year fixed: 6.16% — up from 6.11% last week (avg. points: 0.36)
15-year fixed: 5.71% — up from 5.70% last week (avg. points: 0.39)
5/1 ARM: 5.96% — up from 5.92% last week (avg. points: 0.44)
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. A majority, 56 percent, think rates are headed higher. The remaining 44 percent are evenly split between forecasting a decline and expecting rates to remain more or less unchanged in the coming 30 to 45 days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc. (NASDAQ:RATE)
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure and InsureMe. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company’s flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on 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 2007, Bankrate.com had nearly 60 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 and The New York Times (NYSE:NYT) . Bankrate.com’s information is also distributed through more than 500 newspapers.
Source: Bankrate, Inc.
Web site: http://www.bankrate.com
