Bankrate: Mortgage Rates Jump to 2-Year High
NEW YORK, Aug. 22, 2013 /PRNewswire/ -- Fixed mortgage rates climbed this week, with the benchmark 30-year fixed mortgage rate jumping to the highest point in more than two years at 4.74 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.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage bounded higher to 3.75 percent, while the larger jumbo 30-year fixed mortgage rate leapt to 4.88 percent. Adjustable rate mortgages were mostly higher, reaching levels not seen since April 2011, with the popular 5-year adjustable rate now 3.69 percent and the 7-year ARM at 4.04 percent.
Mortgage rates moved higher as investors took a glass half full outlook on economic data, particularly weekly unemployment claims filings. Bond yields, to which mortgage rates are closely related, increased to two-year highs on speculation of a September start to tapering of the Federal Reserve's bond purchases. While nothing is official yet, and likely won't be at least until we get to the other side of the jobs report in early September, the markets have clearly priced in the expectation of Fed tapering at that point.
As recently as May 1st, the average 30-year fixed mortgage rate was 3.52 percent. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.74 percent, the monthly payment for the same size loan would be $1,042.09, a difference of almost $142 per month for anyone that waited too long.
30-year fixed: 4.74% -- up from 4.57% last week (avg. points: 0.28)
15-year fixed: 3.75% -- up from 3.61% last week (avg. points: 0.22)
5/1 ARM: 3.69% -- up from 3.61% last week (avg. points: 0.22)
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. Half of the respondents expect mortgage rates to keep rising, with one-third – 33 percent -- predicting that mortgage rates will remain more or less unchanged in the coming week. Just 17 percent forecast a pullback in mortgage rates in the next week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.
To download the Bankrate Mortgage Calculator & Mortgage Rates iPhone App 2.0 go to https://itunes.apple.com/us/app/bankrate-mortgage-calculator/id551454062?mt=8.
About Bankrate, Inc.
Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, our flagship website, and other owned and operated personal finance websites, including CreditCards.com, Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, InsuranceQuotes.com, CarInsuranceQuotes.com, InsureMe.com, and NetQuote.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of nearly 600 local markets in all 50 U.S. states, Bankrate generates over 172,000 distinct rate tables capturing on average over three million pieces of information daily. Bankrate develops and provides web services to over 80 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.
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SOURCE Bankrate, Inc.