NEW YORK, NY - Mortgage rates increased for a second consecutive week, with the benchmark 30-year fixed mortgage rate rising above the 4 percent threshold to 4.04 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.28 discount and origination points.
The larger jumbo 30-year fixed climbed to 4.09 percent, and the average 15-year fixed mortgage rate stepped up to 3.25 percent. Adjustable mortgage rates were mostly higher, with the 5-year ARM ascending to 3.52 percent and the 7-year ARM increasing to 3.69 percent.
Mortgage rates increased for a second consecutive week, but only modestly. Mortgage rates are at levels seen just a handful of weeks ago, with bond yields and mortgage rates rebounding as market tensions eased. A temporary agreement to avoid a debt default and government shutdown were reached, chatter about forthcoming tax reform is louder than ever, and despite the continued exchange of barbs with North Korea markets have been unfazed. The widely expected announcement by the Federal Reserve about beginning to downsize their $4.5 trillion bond portfolio in October also had bond investors unwinding some of their positions. As investors lightened their bond holdings, it pushed yields on government and mortgage backed bonds higher. Mortgage rates are closely related to yields on long-term government bonds.
At the current average 30-year fixed mortgage rate of 4.04 percent, the monthly payment for a $200,000 loan is $959.45.
30-year fixed: 4.04% -- up from 3.99% last week (avg. points: 0.28)
15-year fixed: 3.25% -- up from 3.22% last week (avg. points: 0.23)
5/1 ARM: 3.52% -- up from 3.46% last week (avg. points: 0.35)
Bankrate's national weekly mortgage survey is conducted every 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. There is no clear consensus this week, as 46 percent of respondents predict mortgage rates will remain more or less unchanged, while 31 percent forecast an increase. Just 23 percent expect a decline in mortgages over the coming week.
Source: BankRate.com / #Housing #Economy