Fixed mortgage rates showed a slight increase in the past week, with the average 30-year fixed rate mortgage moving to 6.69 percent, according to Bankrate.com's weekly national survey of large lenders, which remains the highest since the week of June 12, 2002. The 30-year fixed rate mortgages in this week's survey had an average of 0.36 discount and origination points.
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The average 15-year fixed rate mortgage popular for refinancing inched higher to 6.31 percent. On larger loans, the average jumbo 30-year fixed rate increased to 6.87 percent. Adjustable rate mortgages dipped this week. The average 5/1 adjustable rate mortgage slipped to 6.27 percent, and the average one-year ARM moved down to 5.90 percent.
Bankrate conducts its rate survey on Wednesdays, and last week, that fell on the same day that the Consumer Price Index for April was released. It showed that inflation was running higher than most investors had expected, and bond traders overreacted, sending bond yields and mortgage rates higher. Those rates and yields retreated a bit this week from that overreaction.
Enjoy the reprieve while you can. Most economists and mortgage bankers expect rates to generally rise the rest of this year, with the usual spikes and dips. The 30-year fixed has risen about half a point since January, and the Mortgage Bankers Association's chief economist David Duncan predicts that it will rise another 20 basis points or so by the end of the year.
Fixed mortgage rates have increased notably compared to one year ago. This time last year, the average 30-year fixed mortgage rate was 5.72 percent, meaning that the monthly payment on a loan of $165,000 was $959.75. Although fixed mortgage rates have been up and down since, the average 30-year fixed rate is now 6.69 percent, meaning the same loan originated now would carry a payment of $1,063.61.
SURVEY RESULTS
30-year fixed: 6.69% -- up from 6.67% from last week (avg. points: 0.36)
15-year fixed: 6.31% -- up from 6.3% last week (avg. points: 0.34)
5/1 ARM: 6.27% -- down from 6.35% last week (avg. points: 0.33)
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/mortgagerates
For the full mortgage Rate Trend Index, go to: http://www.bankrate.com/RTI
About Bankrate, Inc.
Bankrate, Inc. (NASDAQ:RATE) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. It is the leading aggregator of 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. In 2005, Bankrate.com had over 46 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (NASDAQ:YHOO), America Online (NYSE:TWX), The Wall Street Journal (NYSE:DJ) and The New York Times (NYSE:NYT). Bankrate.com's information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate, Inc. also owns and operates FastFind, an internet lead aggregator and MMIS/Interest.com, which publishes mortgage guides and financial rates and information.
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