NEW YORK, Oct. 13, 2016 /PRNewswire/ -- Mortgage rates
continued their move higher this week with the benchmark 30-year
fixed mortgage rate rising to 3.62 percent, according to
Bankrate.com's weekly national survey. The 30-year fixed mortgage
has an average of 0.22 discount and origination points.
The larger jumbo 30-year fixed climbed to 3.64 percent, the
highest since late July, while the average 15-year fixed mortgage
rate increased to 2.91 percent. Adjustable mortgage rates were also
on the move, with the 5-year ARM rising to 3.12 percent and the
7-year ARM reaching 3.32 percent.
Mortgage rates have been rising because of more than just the
expectation of a Federal Reserve interest rate hike in December.
Wages are increasing, oil prices have gone above $50 per barrel, and core inflation has ticked
higher, all of which are pushing yields on government debt higher.
Mortgage rates are closely related to yields on long-term Treasury
bonds. But this isn't to say that mortgage are now skyrocketing, or
are at immediate risk of doing so, as mortgage rates have returned
to levels seen in mid- September. With the backdrop of sluggish
economic growth and low inflation around the world, there is a
ceiling to how high rates will move right now – and we are likely
very close to it.
At the current average 30-year fixed mortgage rate of 3.62
percent, the monthly payment for a $200,000 loan is $911.54.
SURVEY RESULTS
30-year fixed: 3.62% -- up from 3.56% last week
(avg. points: 0.22)
15-year fixed: 2.91% -- up from 2.85% last week (avg. points:
0.16)
5/1 ARM: 3.12% -- up from 3.07% last week (avg. points: 0.24)
Bankrate's national weekly mortgage survey is conducted each
Wednesday from data provided by the top 10 banks and thrifts in 10
top markets.
For a full analysis of this week's move in mortgage rates, go to
http://www.bankrate.com/finance/mortgages/mortgage-analysis-101216.aspx
The survey is complemented by Bankrate's weekly Rate Trend
Index, in which a panel of mortgage experts predicts which way the
rates are headed over the next seven days. Two-thirds of this
week's respondents predict mortgage rates will keep rising while
one-third expect mortgage rates will hold steady at these levels
over the next week. Interestingly, none of this week's respondents
forecast a decline in mortgage rates in the coming week.
About Bankrate.com
Bankrate.com provides consumers with the expert advice and tools
needed to succeed throughout life's financial journey. For over two
decades, Bankrate.com has been a leading personal finance
destination. The company offers award-winning editorial
content, competitive rate information, and calculators and tools
across multiple categories, including mortgages, deposits, credit
cards, retirement, automobile loans, and taxes. Bankrate aggregates
rate information from over 4,800 institutions on more than 300
financial products. With coverage of over 600 local markets,
Bankrate generates rate tables in all 50 U.S. states. Bankrate
develops and provides web services to more than 100 cobranded
websites with online partners, including some of the most trusted
and frequently visited personal finance sites on the internet, such
as Comcast, Yahoo!, CNBC and Bloomberg. In addition, Bankrate
licenses editorial content to more than 500 newspapers on a daily
basis including The Wall Street Journal, USA Today, The New York
Times and The Los Angeles
Times.
For more information contact:
Kayleen Yates
Vice President, Corporate Communications
kyates@bankrate.com
(917)
368-8677
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SOURCE Bankrate.com