NEW YORK, Nov. 16, 2016 /PRNewswire/ -- Mortgage rates soared this week, with the benchmark 30-year fixed mortgage rate rising to 4.01 percent, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.24 discount and origination points.
The larger jumbo 30-year fixed climbed to 4.01 percent, while the average 15-year fixed mortgage rate jumped to 3.21 percent. Adjustable mortgage rates spiked as well, with the 5-year ARM and 7-year ARM bounding to 3.39 percent and 3.62 percent, respectively.
"Mortgage rates spiked above the 4 percent mark for the first time since January on speculation – and that's all it is at this point – about the potential for more government borrowing, higher inflation, and faster economic growth under a Trump administration. This week's increase in mortgage rates, being dubbed the 'Trump Tantrum', is the biggest one week increase since the 'Taper Tantrum' in June 2013," stated Bankrate.com's chief financial analyst, Greg McBride, CFA. "For an increase of this magnitude to be sustained, eventually the reality will have to catch up with the perception. And since it is likely months before we have specific stimulus plans from the President-elect and even more months until any dollars would actually make their way into the economy, the backdrop of slow global economic growth, aging populations in developed markets, and low inflation around the world may well reassert itself, prompting a rate pullback. Stay tuned."
At the current average 30-year fixed mortgage rate of 4.01 percent, the monthly payment for a $200,000 loan is $955.98.
30-year fixed: 4.01% -- up from 3.73% last week (avg. points: 0.24)
15-year fixed: 3.21% -- up from 2.97% last week (avg. points: 0.20)
5/1 ARM: 3.39% -- up from 3.15% last week (avg. points: 0.29)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.
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 panelists expect rates to go down over the next week, while 40 percent predict that mortgage rates will continue to rise. Just 10 percent expect mortgage rates to remain more or less unchanged over the next seven days.
Bankrate.com provides consumers with the expert advice and tools needed to succeed throughout life's financial journey. For over two decades, Bankrate.com has been a leading personal finance destination. The company offers award-winning editorial content, competitive rate information, and calculators and tools across multiple categories, including mortgages, deposits, credit cards, retirement, automobile loans, and taxes. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to more than 100 cobranded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the internet, such as Comcast, Yahoo!, CNBC and Bloomberg. In addition, Bankrate licenses editorial content to more than 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times and The Los Angeles Times.
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