Mortgage rates climbed after the Federal Reserve's Jan. 28 post-meeting statement was noncommittal about buying long-term Treasury securities. This, coupled with investor concerns regarding the amount of government debt issuance, helped push Treasury yields and fixed mortgage rates higher. As a result, mortgage rates moved up to the highest level since Christmas. Additional volatility in the coming weeks seems likely, especially with a new economic stimulus package in the works.
Many borrowers are holding out for lower rates, but this waiting game can be costly when rates suddenly increase as they did this week. Last week when the average 30-year fixed mortgage rate was 5.48 percent, a $200,000 loan would have carried a monthly payment of $1,133.07. With the average rate now 5.70 percent, the monthly payment for the same size loan would be $1,160.80, a difference of nearly $28 per month.
SURVEY RESULTS
30-year fixed: 5.70% - up from 5.48% last week (avg. points: 0.35)
15-year fixed: 5.31% - up from 5.10% last week (avg. points: 0.4)
5/1 ARM: 5.50% - up from 5.41% last week (avg. points: 0.52)
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.
