NEW YORK, NY - Mortgage rates were only slightly changed this week, with the average rate on the benchmark 30-year fixed mortgage nosing higher to 3.77 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.44 discount and origination points.
The average 15-year fixed mortgage rate slid to a new low of 2.99 percent, while the jumbo 30-year fixed mortgage was a touch higher to 4.39 percent. Adjustable mortgage rates were mixed, with the 5/1 adjustable moving up to 2.91 percent while 3/1, 7/1 and 10/1 ARMs all hit new lows at 2.97 percent, 3.01 percent, and 3.33 percent, respectively.
Comments from the President of the European Central Bank helped reverse some of the recent flight to quality that had brought bond yield and mortgage rates consistently lower. Mortgage rates are closely related to the yields on government bonds. When investors are nervous and piling into safe haven investments, it serves as a catalyst for lower rates. But the reverse is also true, and when any of those trades gets unwound, it pushes rates higher.
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 3.77 percent, the monthly payment for the same size loan would be $928.50, a difference of $313 per month for anyone refinancing now.
30-year fixed: 3.77% -- up from 3.75% last week (avg. points: 0.44)
15-year fixed: 2.99% -- down from 3.00% last week (avg. points: 0.37)
5/1 ARM: 2.91% -- up from 2.89% last week (avg. points: 0.35)
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. There is no clear consensus, with 42 percent of the panelists expecting mortgage rates to remain more or less unchanged over the next seven days. One-third of the respondents predict a rebound in mortgage rates and just 25 percent forecast further declines over the coming week.
For the full mortgage Rate Trend Index, go to www.bankrate.com
Source: BankRate / #Housing #Economy