NEW YORK, NY - Mortgage rates marked a slight increase this week, with the benchmark 30-year fixed mortgage rate rising to 3.81 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.25 discount and origination points.
The average 15-year fixed mortgage climbed to 3.18 percent while the larger jumbo 30-year fixed mortgage inched to 4.01 percent. Adjustable rate mortgages were mixed, with the 5-year ARM jumping to 3.19 percent and the 7-year ARM holding steady at 3.31 percent, the lowest since June 2013.
Mortgage rates moved up slightly in the past week, but remain at among the lowest levels since May 2013. Financial markets continue to be gripped by worries about the global economy, with terrorism and unrest only adding to the concerns. Those concerns, coupled with the expectation of quantitative easing from the European Central Bank, are keeping bond yields and mortgage rates at very low levels. Mortgage rates are closely related to yields on long-term government bonds.
One year ago, the average 30-year fixed mortgage rate was 4.57 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,021.71. With the average rate now at 3.81 percent, the monthly payment for the same size loan would be $933.05, a savings of approximately $89 per month for anyone refinancing now.
30-year fixed: 3.81% -- up from 3.80% last week (avg. points: 0.25)
15-year fixed: 3.18% -- up from 3.11% last week (avg. points: 0.19)
5/1 ARM: 3.19% -- up from 3.09% last week (avg. points: 0.19)
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. More than half of the panelists, 59 percent, expect mortgage rates to remain more or less unchanged. Thirty-three percent predict that mortgage rates will fall, while just 8 percent forecast a rise in mortgage rates over the coming week.