Mortgage Rates Rise for Third Straight Week
NEW YORK, April 13 /PRNewswire-FirstCall/ -- Worries about inflation
and interest rates pushed fixed mortgage rates higher for the third week in
a row. The average 30-year fixed rate mortgage increased to 6.56 percent,
according to Bankrate.com's weekly national survey of large lenders. This
is the highest since the week of June 26, 2002. The 30-year fixed rate
mortgages in this week's survey had an average of 0.39 discount and
origination points.
The average 15-year fixed rate mortgage, popular for refinancing,
stepped up to 6.21 percent. On larger loans, the average jumbo 30-year
fixed rate jumped from 6.68 percent to 6.73 percent. Adjustable rate
mortgages were also higher, with the average 5/1 adjustable rate mortgage
rising from 6.17 percent to 6.25 percent, and the average one-year ARM
notching higher from 5.83 percent to 5.89 percent.
The Federal Open Market Committee is working to keep inflation low, and
inflation is the worst enemy of bond investors. News about the tight labor
market and rising prices for commodities like oil and gold are fueling
inflation worries, and the resulting uncertainty about further Fed rate
hikes. Together, these are the forces helping lift bond yields and mortgage
rates higher. Fixed mortgage rates are closely related to yields on
long-term government bonds.
Fixed mortgage rates have increased notably compared to one year ago.
This time last year, the average 30-year fixed mortgage rate was 5.95
percent, meaning that the monthly payment on a loan of $165,000 was
$983.96. Although fixed mortgage rates haven't increased consistently since
then, the average 30-year fixed rate is now 6.56 percent, meaning the same
loan originated now would carry a payment of $1,049.43. Fixed mortgage
rates remain an attractive refinancing alternative for adjustable rate
borrowers.
and interest rates pushed fixed mortgage rates higher for the third week in
a row. The average 30-year fixed rate mortgage increased to 6.56 percent,
according to Bankrate.com's weekly national survey of large lenders. This
is the highest since the week of June 26, 2002. The 30-year fixed rate
mortgages in this week's survey had an average of 0.39 discount and
origination points.
The average 15-year fixed rate mortgage, popular for refinancing,
stepped up to 6.21 percent. On larger loans, the average jumbo 30-year
fixed rate jumped from 6.68 percent to 6.73 percent. Adjustable rate
mortgages were also higher, with the average 5/1 adjustable rate mortgage
rising from 6.17 percent to 6.25 percent, and the average one-year ARM
notching higher from 5.83 percent to 5.89 percent.
The Federal Open Market Committee is working to keep inflation low, and
inflation is the worst enemy of bond investors. News about the tight labor
market and rising prices for commodities like oil and gold are fueling
inflation worries, and the resulting uncertainty about further Fed rate
hikes. Together, these are the forces helping lift bond yields and mortgage
rates higher. Fixed mortgage rates are closely related to yields on
long-term government bonds.
Fixed mortgage rates have increased notably compared to one year ago.
This time last year, the average 30-year fixed mortgage rate was 5.95
percent, meaning that the monthly payment on a loan of $165,000 was
$983.96. Although fixed mortgage rates haven't increased consistently since
then, the average 30-year fixed rate is now 6.56 percent, meaning the same
loan originated now would carry a payment of $1,049.43. Fixed mortgage
rates remain an attractive refinancing alternative for adjustable rate
borrowers.
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