NEW YORK, NY - Mortgage rates reversed course this week, with the benchmark 30-year fixed mortgage rate jumping to 4.32 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 rate climbed to 3.41 percent, while the larger jumbo 30-year fixed mortgage rate rose to 4.35 percent. Adjustable rate mortgages were also higher this week, with the 5-year ARM rising to 3.31 percent, the 7-year ARM stepping up to 3.53 percent.
Evidence that economic growth is accelerating after a dismal start to the year helped push mortgage rates slightly higher from the lowest levels in nearly a year. Comments from some members of the Federal Reserve's Open Market Committee about the need to curtail the Fed's easy money policy also underscored this week's upward movement in bond yields and mortgage rates. Mortgage rates are closely related to yields on long-term government bonds, both of which would be at higher levels in an environment of a less accommodative Fed and more robust economy. Some bond traders are positioning themselves accordingly ahead of the upcoming employment report. Any disappointments on the job front could easily unwind this week's increase.
As 2013 came to a close, the average 30-year fixed mortgage rate was 4.69 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,036.07. After drifting lower for much of the first five months of 2014, the average rate is now 4.32 percent, and the monthly payment for the same size loan would be $992.09, a savings of nearly $44 per month for anyone that waited.
30-year fixed: 4.32% -- up from 4.25% last week (avg. points: 0.34)
15-year fixed: 3.41% -- up from 3.35% last week (avg. points: 0.21)
5/1 ARM: 3.31% -- up from 3.24% 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. The majority of panelists, 46 percent, say mortgage rates will stay more or less unchanged in the upcoming week. The remaining experts are mixed, with 27 percent predicting mortgage rates will rise and 27 percent expecting rates to fall further this week.
Source: BankRate.com / #Housing #Economy