NEW YORK, NY - Mortgage rates marked a slight increase this week with the benchmark conforming 30-year fixed mortgage rate rising to 4.71 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.
The average 15-year fixed mortgage jumped to 3.86 percent while the larger jumbo 30-year fixed rate dropped to 5.21 percent. Adjustable rate mortgages were higher, with the average 5-year ARM climbing to 3.45 percent and the 7-year ARM stepping up to 3.70 percent.
Mortgage rates rebounded as strong stock market performance and growing anxiety about lack of progress on increasing the debt limit weighed on bonds. Mortgage rates are closely related to yields on long-term government bonds. With money being siphoned away from bonds, mortgage rates increased for just the second time in the past 12 weeks.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed 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 4.71 percent, the monthly payment for the same size loan would be $1,038.48, a difference of $203 per month for anyone 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
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. This week, a majority of the panelists, 62 percent, expect mortgage rates to climb higher. The remaining experts are split down the middle with 19 percent predicting a decline in rates and the other 19 percent predicting that rates will stay more or less unchanged in the upcoming week.
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, InsureMe, CreditCardGuide.com, Bankaholic, CreditCards.com and NetQuote. 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.