NEW YORK, NY - Fixed mortgage rates increased this week with the benchmark 30-year fixed mortgage rate jumping to 4.35 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.36 discount and origination points.
The average 15-year fixed mortgage climbed to 3.42 percent, while the larger jumbo 30-year fixed mortgage rate increased to 4.44 percent. Adjustable rate mortgages were mixed, with the popular 5-year adjustable ticking down to 3.25 percent and the 10-year adjustable rate moving up to 3.96 percent.
Mortgage rates moved higher this week as the post-government shutdown clouds have begun to lift. While the economic news hasn't been stellar, it hasn't shown that the economy cratered due to the shutdown and debt ceiling brinksmanship. This has been enough to lift yields on long-term government bonds and mortgage rates, leading in to this Friday's release of the October jobs report. Mortgage rates are closely related to yields on long-term Treasury yields.
As recently as May 1st, the average 30-year fixed mortgage rate was 3.52 percent. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.35 percent, the monthly payment for the same size loan would be $995.62, a difference of nearly $95 per month for anyone that waited too long.
30-year fixed: 4.35% -- up from 4.27% last week (avg. points: 0.36)
15-year fixed: 3.42% -- up from 3.38% last week (avg. points: 0.26)
5/1 ARM: 3.25% -- down from 3.26% 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. Half of the respondents, 50 percent, forecast an increase in mortgage rates in the next week, while 33 percent predict mortgage rates will decline. Just 17 percent expect mortgage rates to remain more or less unchanged in the next week.
Source: BankRate.com / #Housing #Economy