NEW YORK, NY - Mortgage rates were up slightly this week, with the benchmark 30-year fixed mortgage rate rising to 3.93 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.26 discount and origination points.
The average 15-year fixed mortgage nosed higher to 3.16 percent while the larger jumbo 30-year fixed mortgage reverted to 4.11 percent, where it sat two weeks ago. Adjustable rate mortgages also higher, with the 5-year ARM climbing to 3.28 percent and the 7-year ARM now 3.48 percent.
Mortgage rates followed bond yields higher this week as economic data here at home outweighed rate cuts and economic stimulus efforts elsewhere around the globe. Mortgage rates are closely related to yields on long-term government bonds. The positive tone of recent economic data and an increasing inclination of the Federal Reserve toward a start in interest rate hikes, perhaps as soon as June, fueled this week's increase. However for the benefit of perspective, this week's average 30-year fixed mortgage rate is still lower than anything seen in all of 2014.
One year ago, the average 30-year fixed mortgage rate was 4.45 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,007.44. With the average rate now at 3.93 percent, the monthly payment for the same size loan would be $946.77, a savings of approximately $60 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 3.93% -- up from 3.90% last week (avg. points: 0.26)
15-year fixed: 3.16% -- up from 3.15% last week (avg. points: 0.18)
5/1 ARM: 3.28% -- up from 3.22% last week (avg. points: 0.20)
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, 54 percent, expect mortgage rates to continue rising. But nearly one-third, 31 percent, don't forecast much of a change in mortgage rates at all over the next week. Just 15 percent predict a decline in mortgage rates over the coming week.