NEW YORK, June 4 /PRNewswire-FirstCall/ -- Mortgage rates soared higher this 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
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. The majority of the panelists, 42 percent, expect mortgage rates to keep rising and 33 percent predicted that rates will decline over the next 30 to 45 days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc.
The Bankrate network of companies (Nasdaq: RATE) includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic.com. Each of these businesses helps consumers make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on 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.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2008, Bankrate.com had nearly 72 million unique visitors. Bankrate.com 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 and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers.
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 email@example.com 917-368-8677
SOURCE Bankrate, Inc.