NEW YORK, July 24 NY-mortgage-rates-up
NEW YORK, July 24 /PRNewswire-FirstCall/ -- Mortgage rates soared, with
the average conforming 30-year fixed mortgage rate jumping to 6.77 percent.
According to Bankrate.com's weekly national survey of large lenders, the
average 30-year fixed mortgage has an average of 0.45 discount and origination
points.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
The average 15-year fixed rate mortgage popular for refinancing bounded
higher to 6.32 percent, while the average jumbo 30-year fixed rate was
modestly higher at 7.68 percent. Adjustable mortgage rates were higher, with
the average 1-year ARM rising just a little, to 6.24 percent and the average
5/1 ARM rising a lot, to 6.48 percent.
Mortgage rates posted the biggest one-week increase since February after a
combination of inflation news, multi-billion dollar bank write downs and loss
reserves, and fewer loan purchases by Fannie Mae and Freddie Mac. Inflation
worries were fueled by the June Consumer Price Index and comments favoring
interest rate increases from two members of the Federal Reserve. Poor
quarterly bank earnings were a direct result of deteriorating loans, making
mortgage bond investors increasingly nervous about further defaults. And
despite available capital from the Federal Reserve and the Treasury, Fannie
Mae and Freddie Mac continue to raise capital their way, which means buying
fewer mortgages. While each of these factors played a part in this week's
increase, weak economic growth could have a downward influence on mortgage
rates in the weeks to come.
Mortgage rates have been on a wild ride since the beginning of the year.
The average 30-year fixed mortgage rate was as low as 5.57 percent six months
ago, meaning that a $200,000 loan would have carried a monthly payment of
$1,144.38. But at today's rate of 6.77 percent, a $200,000 loan would mean a
monthly payment of $1,299.86.
SURVEY RESULTS
30-year fixed: 6.77% -- up from 6.42% last week (avg. points: 0.45)
15-year fixed: 6.32% -- up from 5.95% last week (avg. points: 0.46)
5/1 ARM: 6.48% -- up from 6.05% last week (avg. points: 0.49)
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. This week, half of the panelists expect
mortgage rates to continue climbing. Nearly one-in-three, 31 percent, predict
rates to drop while the remaining 19 percent forecast that rates will remain
more or less unchanged in the next 30 to 45 days.
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 and InsureMe. 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), America Online (NYSE: TWX), The Wall Street
Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also
distributed through more than 500 newspapers.
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.
