RISMEDIA, Nov. 9, 2007-Mortgage rates moved up this week, with the average conforming 30-year fixed mortgage rate now 6.34%. According to Bankrate.com’s weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.38 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing increased by the same amount, to 6.04%. The average jumbo 30-year fixed rate inched higher to 7.05%. Adjustable mortgage rates were mixed, with the average one-year ARM rising to 6.07%, and the average 5/1 ARM sinking to 6.18%.
Mortgage rates moved slightly higher on better than expected economic news and continued concerns about credit quality. While the October employment report showed 166,000 new jobs, it was skittishness about the prevalence of bad loans that was the primary force driving mortgage rates higher. The uncertainty about the credit quality of loans made to subprime borrowers and borrowers with limited documentation is giving investors reason to command higher returns, even on loans made to creditworthy home buyers and refinancers. As a result, mortgage rates moved higher as benchmark Treasury yields declined, adding additional risk premium into mortgage-backed bonds.
Fixed mortgage rates remain the most attractive option for borrowers, and they remain at low levels. With the average 30-year fixed mortgage rate at 6.34%, it is almost unchanged versus the level that prevailed one year ago, 6.32%. At 6.34%, a $200,000 loan carries a monthly payment of $1,243.17.
30-year fixed: 6.34% — up from 6.29% last week (avg. points: 0.38)
15-year fixed: 6.04% — up from 5.99% last week (avg. points: 0.32)
5/1 ARM: 6.18% — down from 6.22% last week (avg. points: 0.27)
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 more information, visit http://www.bankrate.com/mortgagerates.
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