Mortgage Rates Nudge Higher

Mortgage Rates Nudge Higher NEW YORK, NY - Mortgage rates were modestly higher this week, with the average conforming 30-year fixed mortgage rising to 5.11 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.41 discount and origination points. The average 15-year fixed mortgage bumped up to 4.47 percent and the larger jumbo 30-year fixed rate retreated to 5.87 percent. Adjustable rate mortgages were split, with the average 1-year ARM inching lower to 4.83 percent while the 5-year ARM climbed to 4.49 percent.

Favorable economic news nudged mortgage rates higher, and the downgrade of Portugal's sovereign credit rating coupled with an end to the Federal Reserve's mortgage bond purchase program spells more volatility on the horizon. But things continue to improve in the jumbo mortgage arena, with rates inching lower on a week when most other mortgage products were higher. The average jumbo 30-year fixed mortgage rate is now the lowest since Feb. 2005.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.11 percent, the monthly payment for the same size loan would be $1,087.13, a savings of $154 per month for a homeowner refinancing now.

For a full analysis of this week's move in mortgage rates, go to: www.bankrate.com/mortgagerates

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next week. Hold on to your hats as three out of every four panelists predicts mortgage rates will climb. A scant 6 percent forecast a decline in mortgage rates and 19 percent expect rates will remain more or less unchanged over the next week.

For the full mortgage Rate Trend Index, go to: www.bankrate.com/RTI

The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe CreditCardGuide.com and Bankaholic. 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. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! ( YHOO), America Online ( AOL), The Wall Street Journal and The New York Times ( NYT).
Source: Bankrate.com

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