RISMEDIA, February 6, 2009-Mortgage rates rebounded from one week ago, with the average 30-year fixed mortgage rate now 5.70%. According to Bankrate.com’s weekly national survey, the average 30-year fixed mortgage has an average of 0.35 discount and origination points.
The average 15-year fixed rate mortgage climbed to 5.31% and the average jumbo 30-year fixed rate bumped up to 7.12%. Adjustable rate mortgages were mixed, with the average 1-year ARM pulling back to 5.73% and the 5/1 ARM rising to 5.5%.
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%, a $200,000 loan would have carried a monthly payment of $1,133.07. With the average rate now 5.70%, the monthly payment for the same size loan would be $1,160.80, a difference of nearly $28 per month.
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)
For more information, visit http://www.bankrate.com/mortgagerates.