Thursday, June 6, 2013

30-Year-Mortgage Rate Highest In Over A Year

Mortgage rates crossed the 4 percent mark for the first time in 13 months, reaching the highest level since April 2012, according to Bankrate.com's weekly national survey.  Mortgage rates have increased sharply on concerns that the Federal Reserve will begin withdrawing the $85 billion of monthly purchases of mortgage backed securities.

 
Mortgage rates increased for a fifth consecutive week, with the benchmark 30-year fixed mortgage rate climbing to 4.1 percent.  The average 30-year fixed mortgage has an average of 0.3 discount and origination points. 


The average 15-year fixed mortgage increased to 3.28 percent, while the larger jumbo 30-year fixed mortgage rate is now at 4.27 percent.  Adjustable rate mortgages bounded higher also, with rates hitting the highest levels since last summer.  


The average 5-year adjustable rate is now 2.93 percent, a level last seen in August of last year, and the 10-year ARM is at 3.48 percent, the highest since June of last year.  


The last time mortgage rates were above 5 percent was Apr. 2011.  At the time, the average 30-year fixed rate was 5.07 percent, meaning a $200,000 loan would have carried a monthly payment of $1,082.22.  With the average rate currently at 4.1 percent, the monthly payment for the same size loan would be $966.40, a difference of $116 per month for anyone refinancing now.


SURVEY RESULTS  
30-year fixed: 4.10% -- up from 3.99% last week (avg. points: 0.3)
15-year fixed: 3.28% -- up from 3.21% last week (avg. points: 0.26)
5/1 ARM: 2.93% -- up from 2.81% last week (avg. points: 0.25)


Source: Bankrate.com