NEW YORK, NY - Mortgage rates were a touch higher this week, with the average conforming 30-year fixed mortgage rate at 4.95 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.45 discount and origination points.
The average 15-year fixed mortgage stepped up to 4.36 percent while the larger jumbo 30-year fixed rate inched lower to 5.74 percent. Adjustable rate mortgages were mixed, with the average 1-year ARM rising to 4.91 percent while the average 5-year ARM backpedalled to 4.21 percent.
Nervous investors and tenuous financial markets kept a lid on mortgage rates. Mortgage shoppers – whether home buyers that are aiming to close by June 30 and capture the tax credit or current homeowners refinancing – have been direct beneficiaries of the global uncertainty. Although the Federal Reserve is expected to leave short-term interest rates low for the time being, evidence of continued improvement in the U.S. economy will eventually lead to higher mortgage rates as the year progresses.
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 4.95 percent, the monthly payment for the same size loan would be $1,067.54, a savings of $174 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.
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. According to the panelists rates have bottomed, but they may not be headed anywhere right away as 62 percent expect mortgage rates to remain more or less unchanged over the next week. The remaining 38 percent predict an increase in mortgage rates.
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! (Nasdaq: YHOO), America Online (NYSE: AOL), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers. Bankrate, Inc. was acquired by Apax Partners, one of the world's leading private equity investment groups, in September 2009. Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience.