NEW YORK, NY - Mortgage rates increased for a third straight week, with the average conforming 30-year fixed mortgage rising to 5.35 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.47 discount and origination points.
The average 15-year fixed mortgage hit a new high-water mark for 2010 at 4.69 percent and the larger jumbo 30-year fixed rate increased to 5.98 percent. Adjustable rate mortgages were mostly higher, with the average 5-year ARM climbing to 4.55 percent while the 7-year ARM crested to 5.04 percent.
Upbeat news on the economy propelled mortgage rates higher for a third week in a row. The average 30-year fixed mortgage rate is now at a five-month high. Positive news on both the manufacturing and service sectors of the economy, coupled with a return to job growth, lifted yields on government debt as investors clamor for better returns. Mortgage rates are closely related to yields on long-term Treasury securities. Looming government debt auctions were also a contributing factor in this week's increase.
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 5.35 percent, the monthly payment for the same size loan would be $1,116.83, a savings of $125 per month for a homeowner refinancing now.
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: 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. There is no clear consensus this week, with 38 percent of panelists predicting mortgage rates will continue climbing. The remaining respondents are evenly split, with 31 percent forecasting a decline from current levels and an equal 31 percent expecting mortgage rates to remain more or less unchanged over the next week.
For the full mortgage Rate Trend Index, go to: www.bankrate.com/RTI
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