NEW YORK, May 29 /PRNewswire-FirstCall/ -- Fixed mortgage rates reversed the decline seen last week, with the average conforming 30-year fixed mortgage rate rising to 6.20 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.47 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 to 5.80 percent, while the average jumbo 30-year fixed rate climbed to 7.38 percent. Adjustable mortgage rates were no exception, with the average 1-year ARM moving up to 6.22 percent and the average 5/1 ARM jumping to 5.86 percent.
Inflation worries were the catalyst for the rise in mortgage rates this week. In recent weeks, building inflation pressures and concerns about economic growth have been playing tug-of-war with mortgage rates. In weeks when inflation trumps economic weakness, like this week, mortgage rates increase. When the focus shifts to the housing market, jobs, or anemic economic growth, mortgage rates fall. Rising oil prices have played a dual role by fueling higher inflation on both the headline and core levels while representing a drag on economic growth. 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.
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 6.20 percent, a $200,000 loan would mean a monthly payment of $1,224.94.
SURVEY RESULTS
30-year fixed: 6.20% -- up from 6.02% last week (avg. points: 0.47)
15-year fixed: 5.80% -- up from 5.63% last week (avg. points: 0.48)
5/1 ARM: 5.86% -- up from 5.71% last week (avg. points: 0.42) 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. A strong majority, 69 percent, expects rates to keep moving higher. Just 25 percent forecast a decline in rates and the remaining 6 percent predict 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. (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, , +1-917-368-8677 Web site: http://www.bankrate.com/ http://www.bankrate.com/mortgagerates http://www.bankrate.com/RTI
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