NEW YORK, April 17 /PRNewswire-FirstCall/ -- Fixed mortgage rates continue to hopscotch back and forth over the 6 percent threshold, with the average conforming 30-year fixed mortgage rate rising to 6.03 percent this week. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.31 discount and origination points.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO ) The average 15-year fixed rate mortgage popular for refinancing increased by a similar amount, to 5.65 percent, while the average jumbo 30-year fixed rate dipped to 7.32 percent. Adjustable mortgage rates were mixed, with the average 1-year ARM rising to 6.45 percent while the average 5/1 ARM retreated to 5.85 percent.
The release of two prominent inflation barometers pushed mortgage rates higher this week. The release of the Producer Price Index on Tuesday and the Consumer Price Index on Wednesday fueled concerns about an upward creep in prices. Bond yields, and mortgage rates, increased in response. Inflation is the worst enemy of an investor in a fixed income instrument such as a mortgage-backed bond as it erodes the value of the payments received.
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 percent 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 percent, which meant the same $200,000 loan would have carried a monthly payment of $1,252.32. Today, with the average rate at 6.03 percent, a $200,000 loan would mean a monthly payment of $1,202.96.
SURVEY RESULTS
30-year fixed: 6.03% -- up from 5.96% last week (avg. points: 0.31)
15-year fixed: 5.65% -- up from 5.56% last week (avg. points: 0.32)
5/1 ARM: 5.85% -- down from 5.95% last week (avg. points: 0.32)
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 The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. Nearly half of the panelists, 46 percent, expect rates to rise further, while 27 percent forecast a decline in rates. An equal 27 percent feel that rates will remain more or less unchanged in the coming 30 to 45 days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI About Bankrate, Inc. Bankrate, Inc. (NASDAQ:RATE) ("Bankrate") 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. Bankrate.com 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 2007, Bankrate.com had nearly 60 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 and The New York Times (NYSE:NYT). Bankrate.com's information is also distributed through more than 450 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates Bankrate Select, an Internet lead aggregator and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information; Nationwide Card Services, which markets a comprehensive line of consumer and business credit cards via the Internet; and Savingforcollege.com, the premier Internet destination for objective information about 529 college savings plans.
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com For more information contact:
Kayleen Keneally
Senior Director, Corporate Communications
917-368-8677
http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO http://photoarchive.ap.org/ DATASOURCE: Bankrate, Inc.
CONTACT: Kayleen Keneally, Senior Director, Corporate Communications, Bankrate, Inc., +1-917-368-8677, Web site: http://www.bankrate.com/ http://www.bankrate.com/mortgagerates http://www.bankrate.com/RTI
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