Bankrate: Mortgage Rates Bounce Off Record Lows
NEW YORK, Oct. 11, 2012 /PRNewswire/ -- Mortgage rates increased following a better than expected jobs report for the month of September. The benchmark 30-year fixed mortgage rate increased to 3.59 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.44 discount and origination points.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage rate rebounded to 2.88 percent and the larger jumbo 30-year mortgage to 4.19 percent, both at levels seen two weeks ago. There were new record lows on some adjustable mortgage rates, with the 3-year and 10-year ARMs plunging to 2.72 percent and 3.24 percent, respectively.
The September employment report beat expectations, with the unemployment rate dropping to 7.8 percent and upward revisions to job growth in the two preceding months. This took away just a bit of the nervousness about the economy, pushing bond yields and mortgage rates higher. Mortgage rates are closely related to yields on long-term government bonds.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 3.59 percent, the monthly payment for the same size loan would be $908.17, a difference of $333 per month for anyone refinancing now.
30-year fixed: 3.59% -- up from 3.52% last week (avg. points: 0.44)
15-year fixed: 2.88% -- up from 2.84% last week (avg. points: 0.37)
5/1 ARM: 2.68% -- up from 2.67% last week (avg. points: 0.42)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
For a full analysis of this week's move in mortgage rates, go to http://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. Two-thirds of the panelists expect mortgage rates to remain more or less unchanged in the next seven days, while 20 percent forecast an increase. Just 13 percent foresee a decline in mortgage rates over the coming week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.
About Bankrate, Inc. (NYSE: RATE)
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, InsureMe, CreditCardGuide.com, Bankaholic, CreditCards.com and NetQuote. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: AOL), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers.
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SOURCE Bankrate, Inc.