NEW YORK, NY - Mortgage rates rebounded slightly after last week's sharp drop, with the benchmark 30-year fixed mortgage rate rising to 4.05 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.27 discount and origination points.
The average 15-year fixed mortgage rate trickled lower to 3.21 percent, while the larger jumbo 30-year fixed mortgage rate nosed higher to 4.10 percent. Adjustable rate mortgages were also higher, with the 5-year ARM moving up to 3.14 percent and the 7-year ARM climbing to 3.42 percent.
Mortgage rates posted a very slight rebound as financial markets stabilized and tensions about the Ebola virus, corporate earnings, and the global economy all eased. Just one week ago, as financial markets were suddenly gripped with worry, volatility spiked with investors stampeding into bonds, driving both bond yields and mortgage rates lower. Mortgage rates are closely related to yields on long-term government bonds. As some sense of calm returned to markets, bond yields rebounded from last week's depths, producing a slight increase in mortgage rates compared to one week ago.
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. Mortgage rates have moved lower thus far in 2014, and with the average rate now 4.05 percent, the monthly payment for the same size loan would be $960.60, a savings of $75 per month for anyone that waited.
SURVEY RESULTS
30-year fixed: 4.05% -- up from 4.01% last week (avg. points: 0.27)
15-year fixed: 3.21% -- down from 3.23% last week (avg. points: 0.14)
5/1 ARM: 3.14% -- up from 3.09% last week (avg. points: 0.12)
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. Don't expect any notable movement in mortgage rates, according to 92 percent of the panelists that predict mortgage rates will remain more or less unchanged over the coming week. The remaining 8 percent forecast a continued rebound in rates. Interestingly, none of this week's respondents predict a decline in mortgage rates over the coming week.