NEW YORK, Nov. 16, 2016 /PRNewswire/ -- Mortgage rates
soared this week, with the benchmark 30-year fixed mortgage rate
rising to 4.01 percent, according to Bankrate.com's weekly national
survey. The 30-year fixed mortgage has an average of 0.24 discount
and origination points.
The larger jumbo 30-year fixed climbed to 4.01 percent, while
the average 15-year fixed mortgage rate jumped to 3.21 percent.
Adjustable mortgage rates spiked as well, with the 5-year ARM and
7-year ARM bounding to 3.39 percent and 3.62 percent, respectively.
"Mortgage rates spiked above the 4 percent mark for the first
time since January on speculation – and that's all it is at this
point – about the potential for more government borrowing, higher
inflation, and faster economic growth under a Trump administration.
This week's increase in mortgage rates, being dubbed the 'Trump
Tantrum', is the biggest one week increase since the 'Taper
Tantrum' in June 2013," stated
Bankrate.com's chief financial analyst, Greg McBride, CFA. "For an increase of this
magnitude to be sustained, eventually the reality will have to
catch up with the perception. And since it is likely months before
we have specific stimulus plans from the President-elect and even
more months until any dollars would actually make their way into
the economy, the backdrop of slow global economic growth, aging
populations in developed markets, and low inflation around the
world may well reassert itself, prompting a rate pullback. Stay
tuned."
At the current average 30-year fixed mortgage rate of 4.01
percent, the monthly payment for a $200,000 loan is $955.98.
SURVEY RESULTS
30-year fixed: 4.01% -- up from 3.73% last week
(avg. points: 0.24)
15-year fixed: 3.21% -- up from 2.97% last week
(avg. points: 0.20)
5/1 ARM: 3.39% -- up from 3.15% last week (avg.
points: 0.29)
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-111616.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. Half of the panelists
expect rates to go down over the next week, while 40 percent
predict that mortgage rates will continue to rise. Just 10 percent
expect mortgage rates to remain more or less unchanged over the
next seven days.
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