NEW YORK, NY - After declining for seven straight weeks, mortgage rates moved higher following better than expected news about jobs, with the benchmark 30-year fixed mortgage rate increasing to 3.6 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.31 discount and origination points.
The average 15-year fixed mortgage jumped to 2.82 percent, while the larger jumbo 30-year fixed mortgage rate settled at the 4 percent mark. Adjustable rate mortgages were mostly higher, with the 5-year nosing higher to 2.64 percent and the 10-year ARM climbing to 3.2 percent.
Mortgage rates had fallen for seven consecutive weeks, to levels that were at, or near, record lows. But the April jobs report was better than expected and helped sway sentiment about the economy. Both bond yields and mortgage rates increased, as mortgage rates are closely related to yields on long-term government bonds. So much of the economy's health is gauged by job growth, and this month's report came on the heels of a lousy March jobs report and some other soft economic data in recent weeks. In particular, the number of new jobs was revised upward for each of the two previous months.
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 3.6 percent, the monthly payment for the same size loan would be $909.29, a difference of $173 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 3.60% -- up from 3.52% last week (avg. points: 0.31)
15-year fixed: 2.82% -- up from 2.75% last week (avg. points: 0.31)
5/1 ARM: 2.64% -- up from 2.63% last week (avg. points: 0.23)
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. Just more than half of respondents don't expect much change in mortgage rates over the coming week, with 54 percent forecasting that mortgage rates will remain more or less unchanged. The remainder were evenly split between predicting an increase (23 percent) and predicting a decline (23 percent).