Mortgage Rates Move Slightly Higher This Week
Fixed mortgage rates moved higher across the board this week, according to the most recent Bankrate.com survey of national mortgage lenders.
The average 30-year fixed mortgage rate - the industry’s most common loan, and its benchmark financing product - rose to 6.25 percent. The 30-year fixed rate mortgages in this week’s survey had an average of 0.27 points.
The average 15-year fixed-rate home loan, a popular option for those considering mortgage refinancing, also increased - to 5.97 percent - over the past seven days.
As far as larger loans are concerned, average 30-year, fixed-rate jumbo mortgage rates rose to 6.52 percent. ARMs also stepped up with the average 5/1 ARM to 6.12 percent and the average one-year ARM rose to 5.97 percent.
In all, mortgage rates nudged higher, but only slightly, for the third straight week. Rates remain sandwiched within the same general range they’ve been hanging in for most of the year to date.
The economy hasn’t shown enough signs of either strength or weakness to give rates a hard push in either direction. This week, uneasiness over Iran and conflicting data regarding the housing market and employment may have pushed rates upward.
Fixed mortgage rates are still markedly lower than last summer when the Federal Reserve raised interest rates for the 17th consecutive (and final) time.
- At the time, the average 30-year fixed mortgage rate peaked at 6.93 percent, and a $165,000 home mortgage loan would carry with it a monthly payment of $1,090.00.
- With the average 30-year fixed rate now only 6.25 percent, the same mortgage loan originated this minute would carry a monthly payment of $1,015.93.
In turn, fixed home loan rates offer a compelling mortgage refinance alternative for those adjustable-rate mortgage borrowers facing sharp payment adjustments.
The survey is complemented by the Bankrate’s weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30-45 days.
Panelists are divided this week, with half of the respondents expecting mortgage rates to remain more or less unchanged. Among the other half, 29 percent predict rates will fall and 21 percent forecast an increase in the next 30-45 days.
SOURCE: Bankrate.com