NEW YORK, NY - Mortgage rates posted modest increases this week, with the benchmark 30-year fixed mortgage rate notching higher to 4.17 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.24 discount and origination points.
The average 15-year fixed mortgage reversed last week's move and returned to 3.34 percent where it had been two weeks ago, while the larger jumbo 30-year fixed mortgage jumped to 4.17 percent. The average rate for the jumbo 30-year fixed rate mortgage is now even with that of the conforming 30-year fixed mortgage. Adjustable mortgage rates were also higher, with the 5-year ARM bounding higher to 3.28 percent and the 7-year ARM ascending to 3.52 percent.
The yo-yoing of mortgage rates in recent weeks coincides with the ebb and flow of nervousness in financial markets about the Greek debt crisis. When fears reached a fever pitch after the July 4 weekend, mortgage rates were on the downswing. When hope of a deal emerges, bond yields and mortgage rates move back up. Mortgage rates are closely related to yields on long-term Treasury notes. There is also the backdrop of an improving U.S. economy and the inevitability of a Federal Reserve interest rate hike that counteracts much of the concern about Greece's predicament.
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 4.17 percent, the monthly payment for the same size loan would be $974.54, a difference of nearly $44 per month for anyone that sat on the fence for three months too long.
30-year fixed: 4.17% -- up from 4.14% last week (avg. points: 0.24)
15-year fixed: 3.34% -- up from 3.28% last week (avg. points: 0.16)
5/1 ARM: 3.28% -- up from 3.16% last week (avg. points: 0.18)
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 the panelists predict mortgage rates will remain more or less unchanged in the coming week while 36 percent expect mortgage rates to continue climbing. Just 14 percent of respondents forecast a decline in mortgage rates in the coming week.
Source: BankRate.com / #Housing #Economy