Mortgage Rates Rebound To 2-Month High: Bankrate

By Newsroom America Staff at 14 Nov 2013

(Newsroom America) -- Mortgage rates increased for a second consecutive week, with the benchmark 30-year fixed mortgage rate climbing to a 2-month high of 4.48 percent, according to Bankrate.com's weekly national survey.

The average 15-year fixed mortgage increased to 3.49 percent, while the larger jumbo 30-year fixed mortgage rate rose to 4.51 percent.

Adjustable rate mortgages were broadly higher also, with the popular 5-year adjustable jumping to 3.33 percent and the 10-year adjustable rate moving above the 4 percent threshold to 4.06 percent.

A better than expected employment report powered mortgage rates higher this week, further vanquishing any lingering worries about a government shutdown-induced economic slowdown.

Both bond yields and mortgage rates moved up, particularly with some talk of a potential December tapering of bond purchases by the Federal Reserve. Mortgage rates are closely related to yields on long-term government bonds. However, the economic data over the next month will determine whether the much anticipated taper actually materializes in December, or if a 2014 start is still the most likely outcome.

As recently as May 1 st, the average 30-year fixed mortgage rate was 3.52 percent. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.48 percent, the monthly payment for the same size loan would be $1,011.00, a difference of nearly $111 per month for anyone that waited too long.

SURVEY RESULTS

30-year fixed: 4.48% -- up from 4.35% last week (avg. points: 0.36)

15-year fixed: 3.49% -- up from 3.42% last week (avg. points: 0.26)

5/1 ARM: 3.33% -- up from 3.25% last week (avg. points: 0.24)

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.

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Half of this week's respondents, 50 percent, expect mortgage rates to remain more or less unchanged over the coming week, while 30 percent predict mortgage rates will fall. Just 20 percent forecast an increase in mortgage rates in the next week.

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