NEW YORK, NY - Mortgage rates increased for a second consecutive week, with the benchmark 30-year fixed mortgage rate moving up to 4.63 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.41 discount and origination points.
The average 15-year fixed mortgage climbed to 3.7 percent, while the larger jumbo 30-year fixed mortgage rate rose to 4.67 percent. Adjustable rate mortgages were also higher, with the average 5-year ARM increasing to 3.43 percent and the 7-year ARM jumping to 3.81 percent.
Mortgage rates and long-term government bonds began to climb following the Federal Reserve's much-awaited announcement about tapering the pace of their bond purchases beginning in January. Mortgage rates are closely related to yields on long-term government bonds. The better tone of recent economic data, coupled with the fact that the Fed will be buying fewer bonds, put upward pressure on yields. If the Fed does as expected, and continues to ratchet back their bond purchases throughout 2014, a steady grind toward higher mortgage rates is likely to result.
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 4.63 percent, the monthly payment for the same size loan would be $1,028.88, a difference of $128 per month for anyone that waited too long.
30-year fixed: 4.63% -- up from 4.58% last week (avg. points: 0.41)
15-year fixed: 3.70% -- up from 3.63% last week (avg. points: 0.26)
5/1 ARM: 3.43% -- up from 3.33% last week (avg. points: 0.29)
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. The panelists are split this week, with 43 percent predicting a rise in mortgage rates and 43 percent expecting mortgage rates to remain more or less unchanged. Just 14 percent forecast a decrease in mortgage rates in the next week.
Source: Bankrate.com / #Housing #Finance