|
|
|
|
Extra
Mortgage rates back over 6 percent
Rising doubts about trade deficits and inflation unsettle bonds, pushing loan rates to seven-month highs. Experts think they won't rise more, though.
By Bankrate.com
Mortgage rates soared this week, returning to the 6% threshold for the first time since August 2004. The average 30-year fixed rate mortgage jumped from 5.87% to 6%, according to Bankrate.com's weekly national survey of large lenders. The 30-year fixed-rate mortgages in this week's survey had an average of 0.3 discount and origination points.
The 15-year fixed rate mortgage popular for refinancing climbed from 5.41% to 5.56%, the highest since July 28, 2004. The average rate for the jumbo 30-year fixed-rate mortgage increased from 6.06% to 6.18%, while the average 5/1 adjustable-rate mortgage ascended from 5.3% to 5.41%.
Mortgage rates climbed on news of record trade and current account deficits, as well as continued concerns about emerging inflation. Bond traders were skittish in the face of such unsettling economic data, selling government bonds and pushing bond yields higher. Mortgage rates are closely related to yields on long-term government bonds.
Mortgage rates may be at seven-month highs, but rates and monthly mortgage payments remain at historically attractive levels. As of Feb. 9, 2005, the average 30-year fixed mortgage rate was 5.59%. At the time, the monthly payment on a $165,000 loan was $946.19. With the average rate having climbed to 6% since, the monthly payment on the same $165,000 loan is now $989.26. The $43.07 difference in monthly payments amounts to more than $15,500 over the loan term.
| Mortgages get more expensive | | Loan | This week | Last week | | 30-year fixed | 6.00% | 5.87% | | 15-year fixed | 5.56% | 5.41% | | 5/1 ARM | 5.41% | 5.30% |
|
Bankrate.com weekly survey
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. 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. In a big change from last week, just 33% of respondents expect rates to rise further in the coming weeks, down from 80% one week ago. Just 17% expect rates to fall, while half predict rates to remain relatively unchanged in the next 30 to 45 days.
|
|
|
|
