NEW YORK, NY - Fixed mortgage rates showed a big increase this week, with the benchmark 30-year fixed mortgage jumping to 3.85 percent this week, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.35 discount and origination points.
The average 15-year fixed mortgage rate climbed higher this week (3.03 percent), as did the larger jumbo 30-year fixed mortgage, jumping to 4.18 percent. Adjustable rate mortgages were mixed, with the 3-year ARM slipping to 3.00 percent, the 5-year ARM rising to 2.82 percent, and the 7-year ARM inching up to 2.99 percent.
Mortgage rates jumped to a 7-month high following a report of robust job growth and encouraging economic data on business investment and retail sales. The benchmark 30-year fixed mortgage rate, now at 3.85 percent, is the highest since it was 3.91 percent on Aug. 22, 2012. Positive economic news leads to higher bond yields, as evidenced by the 10-year Treasury note climbing back above the 2 percent threshold. Mortgage rates are closely related to yields on long-term government bonds, with mortgage rates following suit and moving higher also.
The last time mortgage rates were above 5 percent was Apr. 2011. At the time, the average 30-year fixed rate was 5.07 percent, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate currently at 3.85 percent, the monthly payment for the same size loan would be $937.62, a difference of $145 per month for anyone refinancing now.
30-year fixed: 3.85% -- up from 3.73% last week (avg. points: 0.35)
15-year fixed: 3.03% -- up from 2.96% last week (avg. points: 0.35)
5/1 ARM: 2.82% -- up from 2.68% last week (avg. points: 0.21)
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. More than half of respondents - 55 percent – expect an increase in mortgage rates over the next week. Only nine percent forecast a decrease and the remaining 36 percent predict mortgage rates to remain more or less unchanged over the next seven days.
Source: BankRate / #Housing #Economy