NEW YORK, NY - Mortgage rates showed little movement this week, with the average conforming 30-year fixed mortgage nosing higher to 5.22 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.42 discount and origination points.
The average 15-year fixed mortgage inched lower to 4.55 percent and the larger jumbo 30-year fixed rate ticked down to 5.91 percent. Adjustable rate mortgages were mostly lower, with the average 1-year ARM backpedalling to 4.86 percent while the 5-year ARM dipped to 4.42 percent.
Three weeks after the Federal Reserve's $1.25 trillion mortgage buyback program came to a close, mortgage rates are largely unaffected. The average 30-year fixed mortgage as of March 31 was 5.23 percent and today it is 5.22 percent. But to keep mortgage rates low, the Fed may need to sharpen the rhetoric about raising interest rates when it becomes necessary to do so. If the Fed instead appears soft, investors could lose confidence in their willingness to keep inflation at bay and mortgage rates would quickly lose their anchor to these historic lows.
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 5.22 percent, the monthly payment for the same size loan would be $1,100.69, a savings of $141 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 http://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 seven days. Panelists remain divided this week, with 47 percent predicting a rise in mortgage rates and 41 percent forecasting that rates will remain more or less unchanged. Just 12 percent expect mortgage rates to decline further over the next week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
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