Mortgage Marvel Rate Trends Shows 30-Year Fixed Rates Breaking 5%

MEQUON, Wis., Feb. 10, 2011 /PRNewswire/ -- Mortgage Marvel Rate Trends™, a daily survey of over 950 lenders, reflects interest rates for 30-year fixed rate mortgages increasing significantly to 5.22% from 4.98% over the past week.  

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The growth fulfills predictions that 30-year fixed rate mortgages would exceed the 5% level in 2011. Today's rates reflect a dramatic 1.01% escalation when compared with the historic, all-time low of 4.20% obtained on October 11, 2010.

"After holding steady since the beginning of the year, rates really started to ramp up this week," said Rick Allen, Product Manager for Mortgage Marvel.  "The market has definitely reacted to positive signs for the economy and is showing increasing fear of inflation with the recent increases to commodity and food prices.  If things continue in this direction, we may not see 30-year, fixed mortgage rates below five percent for quite some time."

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With the increase in underlying treasury rates, it's not surprising that mortgage rates increased across the board for the week.  The 15-year fixed rate mortgage experienced significant increases rising to 4.48% from 4.27% for a total increase of 0.21%. Rates for 5/1 ARMs increased 0.19% to 4.25%.  Rates increases for 30-year, fixed rate jumbo loans (typically loans over $417,000) were a bit more modest, increasing from 5.73% to 5.81%.

For the sake of comparison, displayed rates feature 0 discount points unless otherwise indicated.  The assumed loan amount and loan-to-value ratio are $500,000 and 66% for jumbo loans and $187,500 and 75% for all other programs.

For more detailed information, including an interactive graph and state-level detail, go to http://www.mortgagemarvel.com/mortgageratetrends/.

For specific rates and closing costs in your area, go to http://www.mortgagemarvel.com/Pages/AdvancedSearch.aspx.  

About Mortgage Marvel Rate Trends

Mortgage Marvel Rate Trends pulls rates every day directly from the live product and pricing database of 950 national, regional, and local banks and credit unions across the country.  Mortgage Marvel Rate Trends includes average rates for conforming (i.e. loans below $417,000) and jumbo loan programs across all common fixed and adjustable rate products. Mortgage Marvel Rate Trends also separately tracks rates for purchase, rate & term refinance, and cash-out refinance transactions for every product and program, and for every state and region in the U.S.

About Mortgage Marvel and Mortgagebot

Mortgage Marvel (www.MortgageMarvel.com) presents free, accurate, up-to-date mortgage quotes from multiple lenders in an easy-to-understand display. It further enables borrowers to link directly to their preferred lender—where they can complete a mortgage application and get approved with full disclosures, all in about 20 minutes or less.

Mortgage Marvel is operated by Mortgagebot LLC (www.Mortgagebot.com), the industry-leading, Inc. 5000 company that provides the unique, award-winning PowerSite family of integrated point-of-sale (IPOS) solutions. Mortgagebot blends deep mortgage experience with innovative "cloud-computing" technology to create scalable and affordable Web sites for nearly 1,000 banks and credit unions nationwide.

SOURCE Mortgage Marvel Rate Trends