RISMEDIA, April 25, 2008-Fixed mortgage rates moved slightly higher for the second week in a row, with the average conforming 30-year fixed mortgage rate rising to 6.11%. According to Bankrate.com’s weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.43 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing increased to 5.70%, while the average jumbo 30-year fixed rate inched higher to 7.34%. Adjustable mortgage rates were no exception, with the average 1-year ARM rising to 6.55% while the average 5/1 ARM moved up to 5.92%.
Mortgage rates were higher over the last week due to persistent concerns about inflation, as oil prices approached $120 per barrel, and hopes that the housing market is bottoming. Bond yields, to which mortgage rates are closely related, moved up in response. With another interest rate cut expected from the Federal Reserve at their meeting next week and a full economic calendar into early May, mortgage rates could be volatile. Further signs of economic weakness would likely push mortgage rates down, but inflation could propel rates higher.
Mortgage rates have been on a wild ride since the beginning of the year. The average 30-year fixed mortgage rate was as low as 5.57% in January, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38. In February, the average 30-year fixed rate got as high as 6.41%, which meant the same $200,000 loan would have carried a monthly payment of $1,252.32. Today, with the average rate at 6.11%, a $200,000 loan would mean a monthly payment of $1,213.28.
SURVEY RESULTS
30-year fixed: 6.11% — up from 6.03% last week (avg. points: 0.43)
15-year fixed: 5.70% — up from 5.65% last week (avg. points: 0.41)
5/1 ARM: 5.92% — up from 5.85% last week (avg. points: 0.51)
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 more information, visit http://www.bankrate.com/mortgagerates.
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