Mortgage Rates Reverse Course
NEW YORK, June 16, 2011 /PRNewswire/ — Mortgage rates increased this week, following a nine-week streak of declines. The benchmark conforming 30-year fixed mortgage rate is now 4.71 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 jumped up to 3.86 percent and the larger jumbo 30-year fixed rate ticked up to 5.20 percent. Adjustable rate mortgages were higher also, with the average 5-year ARM rising to 3.40 percent and the 7-year ARM climbing to 3.63 percent.
Following nine straight weeks of declines, this week’s increase puts mortgage rates back to where they were the last week in May. The turnaround wasn’t spurred by economic news that was any better. It just wasn’t any worse. Further, the release of producer and consumer price measures for the month of May show inflation isn’t going away despite lower commodity prices. This is likely to put a floor under mortgage rates, pending any evidence of continued economic weakening.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed 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 4.71 percent, the monthly payment for the same size loan would be $1,038.48, a difference of $203 per month for anyone refinancing now.
30-year fixed: 4.71% — up from 4.65% last week (avg. points: 0.41)
15-year fixed: 3.86% — up from 3.79% last week (avg. points: 0.36)
5/1 ARM: 3.40% — up from 3.35% last week (avg. points: 0.33)