NEW YORK, NY - The benchmark conforming 30-year fixed mortgage rate inched higher to 4.30 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points. The average 15-year fixed mortgage bounced back to 3.47 percent while the larger jumbo 30-year fixed rate climbed to 4.87 percent. Adjustable rate mortgages were mostly higher, with the average 5-year ARM rising to 3.13 percent and the 7-year ARM jumping to 3.33 percent.
After falling in each of the past eight weeks and setting new record lows for 5 consecutive weeks, mortgage rates were higher this week. Optimism that Europe can avoid a full-blown financial meltdown gave markets a boost, and that resulted in mortgage rates moving up. But with the backdrop of a weak U.S. economy, slower growth around the globe, and the Federal Reserve reinvesting in mortgage-backed bonds, mortgage rates are destined to stay low in the months ahead.
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 4.30 percent, the monthly payment for the same size loan would be $989.74, a difference of $252 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. There is no clear consensus this week, with 40 percent of the panelists predicting mortgage rates will rise. One-third, 33 percent, expect mortgage rates to remain more or less unchanged, and the remaining 27 percent forecast a decline in mortgage rates over the upcoming week.
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