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Bankrate: Mortgage Rates Tick Higher
added: 2010-07-16

Mortgage rates moved up this week, with the average conforming 30-year fixed mortgage rate rising to 4.77 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.

The average 15-year fixed mortgage inched higher to 4.23 percent, and the larger jumbo 30-year fixed rate rose to 5.5 percent. Adjustable rate mortgages were in on the act also, with the average 5-year ARM climbing to 4.12 percent and the average 7-year ARM increasing to 4.52 percent.

Upbeat corporate earnings and improving investor sentiment pushed mortgage rates slightly higher this week. This comes after a run of downbeat economic news and a prevailing fear that the economy was headed for a double-dip recession that had been driving mortgage rates lower as recently as one week ago. Further evidence of economic improvement and positive outlooks for the second half of 2010 will be necessary to drive mortgage higher, while any disappointing news will once again have investors stampeding into the safety of Treasury securities. Mortgage rates are closely related to yields on long-term government debt. The lingering uncertainty about whether the economy gets better or worse from here will help keep rates at ultra-low levels, a boon to homebuyers and refinancers alike.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average 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 4.77 percent, the monthly payment for the same size loan would be $1,045.71, a savings of $196 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 4.77% - up from 4.74% last week (avg. points: 0.41)

15-year fixed: 4.23% - up from 4.22% last week (avg. points: 0.39)

5/1 ARM: 4.12% - up from 4.06% last week (avg. points: 0.30)


Source: Bankrate.com

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