NEW YORK, NY - Mortgage rates were up for the second consecutive week, with the benchmark 30-year fixed mortgage rate rising to 3.99 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.23 discount and origination points.
The average 15-year fixed mortgage jumped up to 3.17 percent, while the larger jumbo 30-year fixed mortgage rose to 4.07 percent. Adjustable rate mortgages were up as well, with the 5-year ARM moving higher to 3.19 percent and the 7-year ARM climbing to 3.39 percent.
Mortgage rates broke out of a narrow range, jumping sharply this week and pushing the benchmark 30-year fixed mortgage rate near the 4 percent mark. Bond yields, to which mortgage rates are closely related, increased suddenly. However the increase wasn't due to fundamental factors such as robust U.S. economic growth - which was hardly the case in the first quarter - but rather due to currency fluctuations and prospects for an uptick in inflation. The upcoming monthly jobs report should shed some light in the health of the U.S. economy and could prove to be the catalyst for the next move, either up or down, in mortgage rates.
One year ago, the average 30-year fixed mortgage rate was 4.44 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,006.25. With the average rate now at 3.99 percent, the monthly payment for the same size loan would be $953.68, a savings of $53 per month for anyone refinancing now.
30-year fixed: 3.99% -- up from 3.86% last week (avg. points: 0.23)
15-year fixed: 3.17% -- up from 3.07% last week (avg. points: 0.16)
5/1 ARM: 3.19% -- up from 3.11% 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 10 top 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. Half of this week's respondents predict mortgage rates to rise in the coming week. Among the other half of respondents, 30 percent expect rates to drop and 10 percent forecast that mortgage rates will remain more or less unchanged over the coming week.
Source: BankRate.com / #Housing #Economy