Mortgage Rates Slowly Rising

Mortgage Rates Slowly Rising

Mortgage Rates Slowly Rising

Mortgage rates climbed to an average of 4.58 for 30-year fixed rate mortgages shows the results of this week’s national survey administered by Bankrate.com. 15-year fixed rate mortgages rose to 4.06 percent, and jumbo 30-year fixed rate loans averaged around 5.23 percent. Adjustable rate mortgages saw small gains as well, leading to higher mortgage rates across the board.

The rise in rates was mostly pushed by the more optimistic economic reports that were released just before Labor Day. Investors sold off the reliable Treasury securities that strongly affect mortgage rates to invest in less reliable assets. As these investors trade back and forth between Treasury securities and other forms of investing, the mortgage rates will rise and fall with the economic reports influencing the investment market.

The survey is conducted each Wednesday and gathers information on mortgages from the top 10 banks and sources in the top 10 US markets. With this information, experts at Bankrate work to predict how mortgage rates will rise or fall over the next week. About half of the expert panelists predict that mortgage rates will remain steady in the next seven days, while 33 percent claim they will rise and 17 percent say they will fall.

Mortgages rates have not risen over 6 percent since November 2008, when the average mortgage rate was at 6.33 percent. That rate equals a $1241.86 monthly mortgage payment on a $200,000 loan. If a homeowner with a mortgage that has not been refinanced since then chose to do so now, the payments would drop to $1022.90 and save almost $220 per month.

30-year fixed rate mortgages rose 0.05%, from 4.53% to 4.58%, this week. 15-year fixed rate mortgages rose 0.01% over the last seven days, and adjustable rates rose almost 0.10% .


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