NEW YORK, May 23, 2013 /PRNewswire/ -- Mortgage rates increased for a third consecutive week, with the benchmark 30-year fixed mortgage rate rising to 3.74 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.32 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 climbed to 2.97 percent, while the larger jumbo 30-year fixed mortgage rate held steady at 3.99 percent. Adjustable rate mortgages were mixed, with the 1-year adjustable sliding to 2.95 percent, the popular 5-year ARM notching higher to 2.70 percent and the 7-year ARM remaining at 2.87 percent.
Federal Reserve Chairman Ben Bernanke indicated that, for now, the Fed's bond-buying activities will continue. The Fed has been buying $85 billion in long-term bonds each month in an effort to keep a lid on mortgage rates, among other things. Mortgage rates are closely related to yields on long-term government and mortgage-backed bonds. While the job market has shown improvement, the Fed wants to make sure the improvement is sustained, opting to maintain the stimulus rather than pulling the plug too soon.
The last time mortgage rates were above 5 percent was Apr. 2011. At the time, the average 30-year fixed rate was 5.07 percent, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate currently at 3.74 percent, the monthly payment for the same size loan would be $925.10, a difference of $157 per month for anyone refinancing now.
30-year fixed: 3.74% -- up from 3.71% last week (avg. points: 0.32)
15-year fixed: 2.97% -- up from 2.92% last week (avg. points: 0.31)
5/1 ARM: 2.70% -- up from 2.68% last week (avg. points: 0.23)
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/mortgagerates
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. Nearly half of respondents don't expect much change in mortgage rates over the coming week, with 46 percent forecasting that mortgage rates will remain more or less unchanged. Thirty-one percent expect mortgage rates to decline, while the remaining 23 percent predict an increase in mortgage rates over the next seven days.
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
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, Nationwide Card Services, InsuranceQuotes.com, CarInsuranceQuotes.com, InsureMe, Bankrate.com.cn, CreditCards.ca, NetQuote.com, and CD.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.