(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
The average 15-year fixed rate mortgage jumped to 5.2 percent and the average jumbo 30-year fixed rate climbed to 7.22 percent. Adjustable rate mortgages were mixed, with the average 1-year ARM sliding to 5.91 percent and the 5/1 ARM rising to 5.58 percent.
The reversal in mortgage rates was prompted by investors' nervousness about a large supply of government debt and renewed concerns about the health of banks. Higher yields on benchmark Treasury debt and wider mortgage credit spreads spelled an increase in mortgage rates versus one week ago. While mortgage rates remain historically low, the barrier for many homeowners is lack of equity. Similarly, a lack of downpayment could be a barrier to an otherwise well-qualified home buyer.
Lower mortgage rates have opened the door to refinancing for homeowners
with equity. As recently as October, the average 30-year fixed mortgage rate
was 6.77 percent, meaning a
SURVEY RESULTS 30-year fixed: 5.59% -- up from 5.28% last week (avg. points: 0.30) 15-year fixed: 5.20% -- up from 4.89% last week (avg. points: 0.37) 5/1 ARM: 5.58% -- up from 5.51% last week (avg. points: 0.38)
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 a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates
The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. There is no firm conviction among the panelists this week, with 38 percent predicting that rates will remain more or less unchanged over the next 30 to 45 days. The remaining respondents are evenly split, with 31 forecasting higher rates and 31 percent expecting lower rates.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc. (Nasdaq: RATE)
The Bankrate network of companies includes Bankrate.com, Interest.com,
Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee
Disclosure, InsureMe CreditCardGuide.com and Bankaholic. Each of these
businesses helps consumers to make informed decisions about their personal
finance matters. The company's flagship brand, Bankrate.com is a destination
site of personal finance channels, including banking, investing, taxes, debt
management and college finance. Bankrate.com is the leading aggregator of
rates and other information on more than 300 financial products, including
mortgages, credit cards, new and used auto loans, money market accounts and
CDs, checking and ATM fees, home equity loans and online banking fees.
Bankrate.com reviews more than 4,800 financial institutions in 575 markets in
50 states. In 2007, Bankrate.com had nearly 60 million unique visitors.
Bankrate.com provides financial applications and information to a network of
more than 75 partners, including Yahoo! (Nasdaq: YHOO),
For more information contact: Kayleen Keneally Senior Director, Corporate Communications kkeneally@bankrate.com 917-368-8677
NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com
SOURCE Bankrate, Inc.