NEW YORK, Feb. 3, 2011 /PRNewswire/ -- Mortgage rates showed little movement this week, with the benchmark conforming 30-year fixed mortgage rate inching higher to 5.02 percent according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.40 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 nosed higher to 4.29 percent, as did the larger jumbo 30-year fixed rate, increasing to 5.54 percent. Adjustable rate mortgages were mixed, with the average 5-year ARM holding steady at 3.84 percent and the 7-year ARM rising to 4.24 percent.
A rebounding economy and strong corporate earnings - not turmoil in Egypt - were the forces powering mortgage rates this week. News showing continued strength in manufacturing, higher consumer spending, and robust corporate earnings offset Federal Reserve bond purchases, with bond yields moving slightly higher. Mortgage rates are closely related to yields on long-term Treasury notes. But despite the uptick, mortgage rates remained within the well-established range that has prevailed since mid-December.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average 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 5.02 percent, the monthly payment for the same size loan would be $1,076.09 a savings of $165.77 per month for a homeowner refinancing now.
30-year fixed: 5.02% -- up from 4.97% last week (avg. points: 0.40)
15-year fixed: 4.29% -- up from 4.28% last week (avg. points: 0.39)
5/1 ARM: 3.84% -- unchanged from 3.84% last week (avg. points: 0.37)
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. The majority of panelists – 59 percent – expect an increase in mortgage rates over the next week, while 35 percent do not predict much movement at all in mortgage rates, saying they'll be more or less unchanged. The remaining 6 percent foresee mortgage rates falling even lower over the next week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc.
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, 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. Bankrate, Inc. was acquired by Apax Partners, one of the world's leading private equity investment groups, in September 2009. Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience. For more information on Apax, visit: www.Apax.com.
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SOURCE Bankrate, Inc.