Bankrate: Mortgage Rates Show Slight Increase

/PRNewswire/ -- Mortgage rates marked a slight increase, with the benchmark conforming 30-year fixed mortgage rate rising to 4.96 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.41 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage inched to 4.16 percent, and the larger jumbo 30-year fixed rate retreated to 5.45 percent. Adjustable rate mortgages were mostly higher, with the average 5-year ARM moving up to 3.78 percent and the 7-year ARM moving to 4.11 percent.

Mortgage rates increased, but only slightly, as investors digest world events and assess the potential impact on global economic recovery. The outlook for economic growth, inflation, and a desire to avoid market volatility are the key drivers of bond yields and mortgage rates on a day-to-day basis. Mortgage rates are closely related to yields on long-term government bonds.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.96 percent, the monthly payment for the same size loan would be $1,068.76, a difference of $173 per month for anyone refinancing now.

SURVEY RESULTS

30-year fixed: 4.96% -- up from 4.91% last week (avg. points: 0.41)

15-year fixed: 4.16% -- up from 4.12% last week (avg. points: 0.38)

5/1 ARM: 3.78% -- up from 3.74% last week (avg. points: 0.37)

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/finance/mortgages/mortgages-rise-as-treasury-signals-sell-off.aspx?ic_id=tsThumb1.

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Slightly less than half of the panelists, 47 percent, predict rates to increase further. An equal amount of panelists, 47 percent, think the rates will remain more or less unchanged. The remaining 6 percent forecast a decline in mortgage rates over the next seven days.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.

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