Mortgage rates continued to rise this week, with the 30-year fixed mortgage rate rising to 5.08%, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.41 discount and origination points.
The average 15-year fixed mortgage inched to 4.27% and the larger jumbo 30-year fixed rate moved up to 5.57%. Adjustable rate mortgages were slightly lower this week with the average 5-year ARM slipping to 3.87% and the 7-year ARM dropping to 4.21%.
Mortgage rates moved higher, but not very much, as investors looked past global concerns and took in a better-than-expected jobs report. The employment news validated other improving economic data and interest rates moved higher in response. Mortgage rates are closely related to yields on long-term government bonds.
Even though mortgage rates have increased in each of the past three weeks, they’ve remained in a narrow range since late February, owing to a tug-of-war between better economic news and worries about rising oil prices and overseas events that could upend the economic recovery.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.08%, the monthly payment for the same size loan would be $1,083.44, a difference of $158 per month for anyone refinancing now.
Source: Bankrate, Inc.
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