RISMEDIA, September 10, 2010—Mortgage rates moved higher this week, with the average conforming 30-year fixed mortgage rate climbing to 4.58%, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage inched up to 4.06%, and the larger jumbo 30-year fixed rate rose to 5.23%. Adjustable rate mortgages were both up this week, with the average 5-year ARM jumping to 3.91% and the average 7-year ARM moving to 4.17%.
Mortgage rates moved higher following a series of more upbeat economic readings prior to Labor Day. The August jobs report wasn’t stellar, but it wasn’t as dour as expected, and this was a catalyst for investors to move into riskier assets. In doing so, investors sold safe-haven Treasury securities, to which mortgage rates are closely related. The path of mortgage rates will be determined largely by investors’ sentiment about whether the economy is getting better or worse, and will continue to yo-yo up and down amid conflicting economic readings.
The last time mortgage rates were above 6% was Nov. 2008. At that time, the average rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.58%, the monthly payment for the same size loan would be $1,022.90, a savings of almost $219 per month for a homeowner refinancing now.
Survey results
-30-year fixed: 4.58% – down from 4.53% last week (avg. points: 0.37)
-15-year fixed: 4.06% – down from 4.05% last week (avg. points: 0.35)
-5/1 ARM: 3.91% – up from 3.86% last week (avg. points: 0.26)
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 more information, visit www.bankrate.com.
