NEW YORK, NY - Mortgage rates were little changed this week, with the benchmark 30-year fixed mortgage rate holding at 4.05 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 larger jumbo 30-year fixed rate reversed last week's move, dropping to 3.92 percent, and is now one-eighth of a percentage point below the smaller conforming 30-year fixed mortgage. The average 15-year fixed mortgage ticked up to 3.23 percent. Adjustable mortgage rates were mixed, with the 3-year ARM inching down to 3.26 percent while the 5-year ARM nosed higher to 3.24 percent.
Mortgage rates showed little movement as another week of up-and-down financial markets kept demand for the safety of U.S. government bonds at a high level. Mortgage rates are closely related to the yields on long-term Treasury securities. A monthly jobs report that was seen as very middle of the road further clouded whether or not the Federal Reserve will raise interest rates at their meeting next week. While the U.S. economic data is strong enough to support an interest rate hike, it is what is happening elsewhere around the globe that may well cause the Fed to hold off on any move this month.
At the current average 30-year fixed mortgage rate of 4.05 percent, the monthly payment on a $200,000 loan is $960.60.
SURVEY RESULTS
30-year fixed: 4.05% -- unchanged from last week (avg. points: 0.21)
15-year fixed: 3.23% -- up from 3.22% last week (avg. points: 0.16)
5/1 ARM: 3.24% -- 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. Three-quarters of the panelists expect mortgage rates to move higher, with the remaining 25 percent saying mortgage rates will remain more or less unchanged in the coming week. Interestingly, none of the respondents forecast a pullback in mortgage rates over the coming week.