Bankrate: Mortgage Rates Take a Breather
TO BUSINESS EDITOR:
NEW YORK, Aug. 14 /PRNewswire/ -- After posting the sharpest increase in any six-week span since 1987, mortgage rates took a breather this week, according to Bankrate.com's weekly national survey of large lenders. The 30-year fixed rate mortgage dipped to 6.37 percent from 6.43 percent. The mortgages in this week's survey had an average total of 0.33 discount and origination points.
The 15-year fixed mortgage popular for refinancing declined from 5.78 percent to 5.72 percent, with the jumbo 30-year fixed rate mortgage backpedaling from 6.77 percent to 6.72 percent. The one-year adjustable rate mortgage inched 1 basis point higher to 4.11 percent. A basis point is one-hundredth of 1 percentage point.
While financial markets stabilized in anticipation of this week's meeting of the Federal Open Market Committee, continued economic improvement demonstrated in the coming weeks and months would restart the trend toward higher mortgage rates.
Monthly mortgage payments have been affected by the recent movement of mortgage rates. The monthly payment for a $165,000 30-year fixed rate mortgage on June 11 at 5.28 percent was $914.20, but is $1,028.85 this week at 6.37 percent. The increase of more than $114 per month amounts to more than $41,000 over the term of the loan.
30-year fixed: 6.37% -- down from 6.43% last week (avg. points: 0.33)
15-year fixed: 5.72% -- down from 5.78% last week (avg. points: 0.37) 1-year ARM: 4.11% -- up from 4.1% last week (avg. points: 0.32)
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.
Bankrate also supplements its survey of institutions with the Rate Trend Index, a weekly poll of mortgage experts who predict whether rates will rise or fall in the next 30-45 days. This week, the Rate Trend Index panel is divided, with 40 percent expecting rates to drop, 30 percent expecting them to rise and the remaining 30 percent saying they will likely remain the same.
For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates .
To see the mortgage Rate Trend Index, go to http://www.bankrate.com/RTI
About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE) owns and operates Bankrate.com, the Internet's leading consumer banking marketplace. Bankrate.com averages 4 million unique visitors per month, according to comScore Media Metrix, which ranks Bankrate.com first in unique visitors in the "Financial information and advice" category. Bankrate.com reviews more than 4,800 financial institutions in more than 180 markets in 50 states. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes and small business finance. It is the leading aggregator of more than 190 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 provides financial applications and information to a network of more than 80 partners, including Yahoo! (NASDAQ: YHOO), America Online (NYSE: AOL), The Wall Street Journal (NYSE: DJ) and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 100 national and state publications. The Company's stock is now included in the Russell 3000 Index and the Russell 2000 Index.
For more information contact: Paula Sirois www.bankrate.com
SOURCE Bankrate, Inc.