NEW YORK, Feb. 16, 2017 /PRNewswire/ -- Mortgage rates
jumped this week, with the benchmark 30-year fixed mortgage rate
moving to 4.35 percent, according to Bankrate.com's weekly national
survey. The 30-year fixed mortgage has an average of 0.25 discount
and origination points.
The larger jumbo 30-year fixed climbed to 4.34 percent, while
the average 15-year fixed mortgage rate rebounded to 3.51 percent.
Adjustable mortgage rates also moved upward, with the 5-year ARM
notching higher to 3.51 percent and the 7-year ARM stepping up to
3.73 percent.
Mortgage rates moved higher following increases in two different
inflation measures – the Producer Price Index and the Consumer
Price Index – and Fed Chair Janet
Yellen's testimony to Congress that waiting too long to
raise interest rates "would be unwise." With this week's move, the
benchmark 30-year fixed mortgage rate reset a new high water mark
since May 2014. The two inflation
readings and strong results on retail sales for both December and
January indicate an economy gaining momentum. Coupled with near
full employment and the prospect of government stimulus,
Janet Yellen reiterated the need to
raise interest rates further. The timing however, remains
uncertain. But within a 24-hour span following Yellen's initial
comments to the Senate Banking Committee and the release of the
retail sales and consumer price data, the odds of a March rate hike
doubled from 13 percent to 26 percent according to trading in Fed
funds futures.
At the current average 30-year fixed mortgage rate of 4.35
percent, the monthly payment for a $200,000 loan is $995.62.
SURVEY RESULTS
30-year fixed: 4.35% --
up from 4.27% last week (avg. points: 0.25)
15-year fixed: 3.51% -- up from 3.49% last week (avg. points:
0.22)
5/1 ARM: 3.51% -- up from 3.46% 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 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-021517.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. More than half of the
panelists – 55 percent – expect mortgage rates to continue climbing
over the next week. A bit more than one-third of respondents, 36
percent, predict mortgage rates to remain more or less unchanged
while just 9 percent forecast a retreat 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
To view the original version on PR Newswire,
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SOURCE Bankrate.com