NEW YORK, NY - Mortgage rates continued to climb this week, with the benchmark 30-year fixed mortgage rate climbing to 4.15 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 stepping up to 3.39 percent, while the larger jumbo 30-year fixed mortgage climbed to 4.17 percent. Adjustable rate mortgages were mostly higher, with the 3-year ARM moving up to 3.23 percent and the 5-year ARM leaping to 3.24 percent.
Mortgage rates rocketed higher following a stronger than expected monthly employment report. The good news on the job front further solidifies the notion that the Federal Reserve will likely begin raising interest rates soon, perhaps in the third quarter of this year. The job market is one area the Fed has specifically pointed to as needing to show further improvement before they'd be comfortable raising short-term interest rates, and further improvement is what we have seen.
Six weeks ago mortgage rates were at the lowest point in nearly two years when the average 30-year fixed mortgage rate was 3.79 percent. At that time, a $200,000 loan would have carried a monthly payment of $930.78. With the average rate now at 4.15 percent, the monthly payment for the same size loan would be $972.21, a difference of $41 per month for anyone that waited just a bit too long.
30-year fixed: 4.15% -- up from 4.03% last week (avg. points: 0.23)
15-year fixed: 3.39% -- up from 3.26% last week (avg. points: 0.18)
5/1 ARM: 3.24% -- up from 3.18% 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. The majority of panelists, 80 percent, expect mortgage rates will continue to rise, while just 20 percent predict a pullback. None of the panelists expect rates will fall over the coming week.