Weekly statistics from Bankrate.com (NYSE:RATE) show mortgage rates increasing for a fifth straight week and the popular 30-year fixed-rate mortgage option increasing to an average rate of 4.10 percent.
Weekly statistics from Bankrate.com (NYSE:RATE) show mortgage rates increasing for a fifth straight week and the popular 30-year fixed-rate mortgage option increasing to an average rate of 4.10 percent. This is the highest average rate on 30-year home loans since April 2012.
Other figures reported in Bankrate.com’s weekly survey include 15-year fixed-rate mortgages climbing to an average rate of 3.28 percent and jumbo 30-year mortgages going up to 4.27 percent. Even adjustable rate mortgages were reported to be reaching their highest levels in about a year or close to that. 5-year ARMs are presently at 2.93 percent, the highest rates have been since August 2012, while 10-year ARMs surged to an average 3.48 percent, which is the highest rate since June 2012.
Just as they have in previous weeks, worries of the Federal Reserve curtailing its economic stimulus initiative (“QE3”) were the primary variable causing rates to surge.
Despite that, Bankrate.com remains confident that the Fed’s program will continue due to the U.S. economy’s recovery still moving quite slowly. We’re still in a slow growth economy, with high unemployment, and an active Fed, and any disappointing economic news will almost certainly bring mortgage rates lower,” said the site in a statement.
Mortgage rates are still close to their historical lows, as 30-year mortgages were at 5.07 percent in April 2011, the last time rates went past the 5 percent mark. Borrowers can still save slightly more than $100 a month on their mortgage payments compared to that time by taking advantage of today’s rates.