NEW YORK, Nov. 8 /PRNewswire-FirstCall/ — Mortgage rates moved up this week, with the average conforming 30-year fixed mortgage rate now 6.34 percent. 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 percent. The average jumbo 30-year fixed rate inched higher to 7.05 percent. Adjustable mortgage rates were mixed, with the average one-year ARM rising to 6.07 percent, and the average 5/1 ARM sinking to 6.18 percent.
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 percent, it is almost unchanged versus the level that prevailed one year ago, 6.32 percent. At 6.34 percent, a $200,000 loan carries a monthly payment of $1,243.17.
SURVEY RESULTS
- 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 a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com/mortgagerates
The survey is complemented by Bankrate’s weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. Mortgage rates could rise, with half of
respondents forecasting a continued increase in rates. The other half is split, with 29 percent predicting a decline and 21 percent expecting mortgage rates to remain unchanged over the next 30 to 45 days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE) (“Bankrate”) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate is the leading aggregator of more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2006, Bankrate.com had nearly 53 million unique visitors. Bankrate provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: TWX), The Wall Street Journal (NYSE: DJ) and The New York Times (NYSE: NYT). Bankrate’s information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates Bankrate Select, an Internet lead aggregator, Mortgage-calc.com, which provides consumers with financial calculators, and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information.
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com
For more information contact:
Kayleen Keneally
Senior Director, Corporate Communications
kkeneally (at) bankrate (dot) com
917-368-8677
SOURCE Bankrate, Inc.
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