NEW YORK, NY - Mortgage rates jumped higher this week, with the benchmark 30-year fixed mortgage rate retreating to 4.51 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 was up to 3.56 percent and the larger jumbo 30-year fixed mortgage rate climbed to 4.53 percent. Adjustable rate mortgages also rebounded this week, with the popular 5-year adjustable rising to 3.36 percent and the 7-year ARM bouncing up to 3.62 percent.
Mortgage rates rebounded following Janet Yellen's post-FOMC meeting press conference, with mortgage rates more than erasing the previous week's decline. The benchmark 30-year fixed mortgage rate reached the highest level since Jan. 22. What sparked the rise in rates was Yellen's response to a question where she indicated the Federal Reserve might consider raising short-term interest rates approximately six months after the end of the bond purchase program. While this initially spooked markets, cooler heads have since prevailed with rates stabilizing following a more pronounced initial run-up.
On May 1, 2013, 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 4.51 percent, the monthly payment for the same size loan would be $1,014.56, a difference of $114 per month for anyone that waited too long.
30-year fixed: 4.51% -- up from 4.46% last week (avg. points: 0.34)
15-year fixed: 3.56% -- up from 3.48% last week (avg. points: 0.20)
5/1 ARM: 3.36% -- up from 3.26% last week (avg. points: 0.22)
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. This week, panelist are split with 30 percent of the experts predicting that mortgage rates will fall in the coming week, and 30 percent expecting rates to rise. The remaining panelists, 40 percent, expect mortgage rates to remain more or less unchanged over the next week.