NEW YORK, NY - Mortgage rates were up very modestly, with the benchmark 30-year fixed mortgage rate rising to 4.16 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 held at 3.35 percent, while the larger jumbo 30-year fixed mortgage also climbed to an 8-month high, at 4.21 percent. Adjustable rate mortgages were higher as well, with the 5-year ARM nosing up to 3.23 percent, and the 10-year ARM jumping to a 4-month high of 3.77 percent.
Mortgage rates were up slightly this week, but it was enough to push mortgage rates to the highest level since October 2014. Mortgage rates initially moved lower following the Federal Open Market Committee meeting, but a better tone of economic data and easing tensions in European markets caused mortgage rates to reverse course in the days since. New home sales jumped and the economic output for the first quarter was revised to a more palatable decline of 0.2 percent from the previous estimate of 0.7 percent. An improving U.S. economy and less global financial stress about Greece makes the safe haven holding of U.S. government debt less desirable, driving up both bond yields and mortgage rates. Mortgage rates are closely related to yields on long-term Treasury notes.
Two months 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 4.16 percent, the monthly payment for the same size loan would be $973.37, a difference of $42 per month for anyone that waited just a bit too long.
30-year fixed: 4.16% -- up from 4.13% last week (avg. points: 0.25)
15-year fixed: 3.35% -- unchanged from last week (avg. points: 0.18)
5/1 ARM: 3.23% -- up from 3.22% 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 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. More than half of the panelists, 55 percent, forecast an increase in mortgage rates over the coming week while 27 percent expect mortgage rates to remain more or less unchanged. Just 18 percent of respondents foresee a decline in mortgage rates over the coming week.