Mortgage Rates Continue to Rise
Mortgages rates rose again for the second consecutive week. The average mortgage rate for a 30-year fixed term loan is now 4.79 percent says Bankrate’s weekly survey of banks across the country. This mortgage also comes with an average of 0.32 origination and discount points. 15 year fixed mortgage rates also climbed this week to 3.9 percent on average. Jumbo 30-year fixed rates also rose to a total of 5.27 percent. ARMs, or adjustable rate mortgages, rose in rates to 3.49 for a 5-year term and 3.72 for a 7-year term.
This is the third rise in mortgage rates in the past four weeks. Improving economic forecasts and optimistic views about the Greek debt default issue has pushed the rates on home loans to a high point that tops anything seen in the past two months. As more information comes out over the next few weeks about the country’s economic recovery and corporate quarterly earning reports these rates could skyrocket or plummet according to investors’ whims.
Mortgage rates haven’t risen above 6 percent since November, 2008. At that time a basic 30-year fixed mortgage rate sat at 6.33 percent. This translates into a $1,241 monthly payment on a $200,000 home loan. The current rate of 4.79 percent translates into a monthly payment of $1,048. That’s a savings of nearly $200 and is well worth refinancing if you haven’t done so since 2008 or earlier.
Bankrate consults a panel of mortgage experts to diagnose whether rates will rise or fall over the next week. Nearly half of the experts expect rates to remain the same for the upcoming week and 35 percent are predicting a fall. This leaves just 18 percent expecting a rise in mortgage rates. Homeowners may want to consider refinancing quickly to take advantage of these rates before speculation drives them any higher.