NEW YORK, June 26 /PRNewswire-FirstCall/ -- Fixed mortgage rates took a breather, with the average conforming 30-year fixed mortgage rate holding at 6.62 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.4 discount and origination points.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO ) The average 15-year fixed rate mortgage popular for refinancing inched lower to 6.19 percent, while the average jumbo 30-year fixed rate nudged higher to 7.72 percent. Adjustable mortgage rates moved higher, with the average 1-year ARM rising to 6.27 percent and the average 5/1 ARM increasing to 6.28 percent.
After rising one-half percentage point in a three week span, mortgage rates halted the advance this week as investors began to realize that the Fed's tough talk on inflation would remain just that -- talk. While the Federal Open Market Committee has shifted the focus to inflation, any interest rate hike is unlikely in the near term given the weak economic growth and ailing housing market. In the meantime, we can expect more "jawboning" by the Fed as the economic and inflation pictures come into clearer focus. Fixed mortgage rates are closely related to yields on long-term government bonds, and both are heavily influenced by the outlook for the economy and inflation.
Although mortgage rates were unchanged this week, they 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. But at today's rate of 6.62 percent, a $200,000 loan would mean a monthly payment of $1,279.96.
SURVEY RESULTS 30-year fixed: 6.62% -- unchanged from last week (avg. points: 0.40) 15-year fixed: 6.19% -- down from 6.20% last week (avg. points: 0.40) 5/1 ARM: 6.28% -- up from 6.24% last week (avg. points: 0.46)
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. More than half of the panelists, 54 percent, expect rates to remain more or less unchanged. Higher rates are forecast by 38 percent of the panelists, with just 8 percent predicting a decline in the next 30 to 45 days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI About Bankrate, Inc. (NASDAQ:RATE) The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure and InsureMe. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, 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 rates and other information on 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 500 newspapers.
For more information contact: Kayleen Keneally
Senior Director, Corporate Communications
917-368-8677
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com 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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