Bankrate: Mortgage Rates Post Mixed Results
August 13 2009 - 7:30AM
PR Newswire (US)
NEW YORK, Aug. 13 /PRNewswire-FirstCall/ -- The average 30-year
fixed mortgage rate inched higher to 5.67 percent this week,
according to Bankrate.com's weekly national survey. The average
30-year fixed mortgage has an average of 0.36 discount and
origination points. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO ) The average
15-year fixed rate mortgage fell to 4.93 percent, while the average
jumbo 30-year fixed rate plunged to 6.45 percent. Adjustable rate
mortgages were lower, with the average 1-year ARM dipping to 5.19
percent and the 5-year ARM dropping to 4.93 percent. Mortgage rates
have been in a narrow range for nearly two months, even as the
economy has shown improvement. With the Federal Reserve beginning
to wean the markets from its repurchases of Treasury debt, there
will be less to restrain mortgage rates if the economic data
continues to improve. Should the economic recovery stumble, as it
most likely will at some point, mortgage rates will pull back.
Historically, bond yields and mortgage rates have shown very little
movement over long periods of time that are punctuated by sharp
movement in a very short period of time. Mortgage rates are closely
related to yields on long-term government bonds. The pattern is
likely to play out once again, but it remains unclear whether the
next big move is up or down. Mortgage rates remain much lower than
one year ago. This time last year, the average 30-year fixed
mortgage rate was 6.74 percent, meaning a $200,000 loan would have
carried a monthly payment of $1,295.87. With the average rate now
5.67 percent, the monthly payment for the same size loan would be
$1,157.00, a savings of $139 per month for a homeowner refinancing
now. SURVEY RESULTS 30-year fixed: 5.67% -- up from 5.65% last week
(avg. points: 0.36) 15-year fixed: 4.93% -- down from 4.97% last
week (avg. points: 0.39) 5/1 ARM: 4.93% -- down from 5.03% last
week (avg. points: 0.43) 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 only consensus is that rates
probably aren't headed higher right away, with just 23 percent
forecasting an increase. The majority of panelists are almost
evenly split, with 38 percent predicting a decrease in rates and 39
percent expecting mortgage rates to remain more or less unchanged
in 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 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. http://www.bankrate.com/ 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
917-368-8677 http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO
http://photoarchive.ap.org/ DATASOURCE: Bankrate, Inc. CONTACT:
Kayleen Keneally, Senior Director, Corporate Communications,
+1-917-368-8677, Web Site: http://www.bankrate.com/
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