Thursday, July 11, 2013

Mortgage Rates Hit a 2-Year High

Mortgage rates rebounded following a better-than-expected jobs report, with the benchmark 30-year fixed mortgage rate rising to 4.66 percent, according to Bankrate.com's weekly national survey.  The average 30-year fixed mortgage has an average of 0.28 discount and origination points.


The average 15-year fixed mortgage increased to 3.75 percent, while the larger jumbo 30-year fixed mortgage rate climbed to 4.82 percent.  Adjustable rate mortgages moved higher also.  The popular 5-year adjustable rate jumped to 3.63 percent, the highest in more than two years, while the 10-year adjustable hit 4.07 percent.  


This week's jump in mortgage rates, which more than wiped out last week's retreat, came after the release of the monthly employment report.  According to Bankrate analysts, job growth for June that exceeded expectations, coupled with upward revisions to April and May payrolls, were evidence of the type of improvement the Fed will need to see to begin curtailing their bond purchases.  And for that reason, we saw further increases in both bond yields and mortgage rates, to levels above where they were following Ben Bernanke's late June press conference.  


As recently as May 1 st, the average 30-year fixed mortgage rate was 3.52 percent. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.66 percent, the monthly payment for the same size loan would be $1,032.47, a difference of $132 per month for anyone that waited just a little too long. 


SURVEY RESULTS
30-year fixed: 4.66% -- up from 4.48% last week (avg. points: 0.28)
15-year fixed: 3.75% -- up from 3.62% last week (avg. points: 0.26)
5/1 ARM: 3.63% -- up from 3.48% last week (avg. points: 0.33)

SOURCE: Bankrate.com