NEW YORK, NY - Mortgage rates continued the march higher, with the benchmark 30-year fixed mortgage rate climbing to 4.19 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.21 discount and origination points.
The average 15-year fixed mortgage dipped to 3.34 percent, while the larger jumbo 30-year fixed mortgage sank to 4.18 percent. This is just the second time the average rate for the jumbo 30-year fixed rate mortgage is below that of the conventional 30-year fixed mortgage, the last coming in April 2014. Adjustable rate mortgages were mostly higher, with the 5-year ARM rising to 3.25 percent, and the 7-year ARM stepping up to 3.5 percent.
Mortgage rates were up again this week as the tone of U.S. economic data remains positive. The improving U.S. economy is overshadowing the Greek debt crisis, at least as far as the bond market is concerned. Continued improvement in the economy further cements the idea that the Federal Reserve is moving ever closer to raising interest rates. This keeps both bond yields and mortgage rates on the move. Mortgage rates are closely related to yields on long-term Treasury notes.
In mid-April, 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 4.19 percent, the monthly payment for the same size loan would be $976.87, a difference of $46 per month for anyone that waited just a bit too long.
30-year fixed: 4.19% -- up from 4.16% last week (avg. points: 0.21)
15-year fixed: 3.34% -- down from 3.35% last week (avg. points: 0.18)
5/1 ARM: 3.25% -- up from 3.23% 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. The majority of panelists, 59 percent, expect mortgage rates to continue climbing over the coming week while just 8 percent forecast a pullback. The remaining one-third of respondents predicts that mortgage rates will remain more or less unchanged.
Source: BankRate.com / #Housing #Economy