June 8, 2009
Mortgage rates soared higher last week, with the average 30-year fixed mortgage rate rising to 5.65 percent. According to Bankrate.com’s weekly national survey, the average 30-year fixed mortgage has an average of 0.44 discount and origination points.
The average 15-year fixed rate mortgage climbed to 5.06 percent, while the average jumbo 30-year fixed rate rebounded to 6.68 percent. Adjustable rate mortgages were mixed, with the average 1-year ARM slipping to 5.01 percent and the 5-year ARM jumping to 5.20 percent.
Mortgage rates posted another strong move higher this week, as the focus among bond investors has shifted to concerns about budget deficits and inflation. However, mortgage rates still remain well below the 6 percent mark, and are not an impediment to well-qualified borrowers. The Federal Reserve, with more than $1 trillion remaining in their stated mortgage- and government-bond buyback program, could accelerate or possibly increase those purchases in an effort to bring rates lower. Any further announcements are unlikely before the June 24 Federal Open Market Committee meeting.
Mortgage rates remain significantly lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.52 percent, meaning a $200,000 loan would have carried a monthly payment of $1,266.77. With the average rate now at 5.65 percent, the monthly payment for the same size loan would be $1,154.47, a savings of $112. 30 per month for a homeowner refinancing now.
30-year fixed: 5.65% — up from 5.45% last week (avg. points: 0.44)
15-year fixed: 5.06% — up from 4.86% last week (avg. points: 0.38)
5/1 ARM: 5.20% — down from 4.94% last week (avg. points: 0.44)
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/mortgagerates.
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