NEW YORK, NY - Mortgage rates moved higher for a second consecutive week, with the benchmark 30-year fixed mortgage rate climbing to 3.71 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.34 discount and origination points.
The average 15-year fixed mortgage increased to 2.92 percent, while the larger jumbo 30-year fixed mortgage rate inched lower to 3.99 percent. Adjustable rate mortgages were also higher, with the popular 5-year ARM rising to 2.68 percent and the 10-year adjustable now at 3.22 percent.
The suddenly glass-half-full economic sentiment continues to push bond yields and mortgage rates higher. Mortgage rates are closely related to yields on long-term government bonds. The benchmark 30-year fixed mortgage rate is now the highest since early April. Despite the increase, however, mortgage rates have been in a narrow one-third of a percentage point range since December. That is in tune with the not-too-hot, not-too-cold economic performance.
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 3.71 percent, the monthly payment for the same size loan would be $921.70, a difference of $160 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 3.71% -- up from 3.60% last week (avg. points: 0.34)
15-year fixed: 2.92% -- up from 2.82% last week (avg. points: 0.32)
5/1 ARM: 2.68% -- up from 2.64% last week (avg. points: 0.24)
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. Thirty-eight percent expect mortgage rates to keep climbing, while just 8 percent predict a decline in mortgage rates over the next seven days.