Bankrate: Mortgage Rates Reach Highest Point in the Last Twelve Months

NEW YORK, May 30, 2013 /PRNewswire/ -- Mortgage rates increased for a fourth consecutive week, with the benchmark 30-year fixed mortgage rate rising to 3.99 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.36 discount and origination points.

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To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage climbed to 3.21 percent, and the same was true for the larger jumbo 30-year fixed mortgage rate which jumped to 4.20 percent. Adjustable rate mortgages were also higher, with the popular 5-year ARM notching higher to 2.81 percent and the 1-year ARM leaping to 3.04 percent, respectively. 

Mortgage rates jumped for a fourth consecutive week, rising to the highest point in the last twelve months. The prospect of the Federal Reserve beginning to taper the pace of bond purchases, coupled with continued positive economic news, pushed bond yields and mortgage rates higher. Mortgage rates are closely related to yields on long-term bonds.

The last time mortgage rates were above 5 percent was Apr. 2011. At the time, the average 30-year fixed rate was 5.07 percent, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate currently at 3.99 percent, the monthly payment for the same size loan would be $953.68, a difference of $129 per month for anyone refinancing now.

SURVEY RESULTS

30-year fixed: 3.99% -- up from 3.74% last week (avg. points: 0.36)

15-year fixed: 3.21% -- up from 2.97% last week (avg. points: 0.27)

5/1 ARM: 2.81% -- up from 2.70% last week (avg. points: 0.25)

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.

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. The panelists were split this week, with 40 percent forecasting that mortgage rates will increase in the coming week and 40 percent predicting that rates will decline.  The remaining 20% expect rates to remain more or less unchanged.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.

About Bankrate, Inc.

Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, our flagship website, and other owned and operated personal finance websites, including CreditCards.com, Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, Nationwide Card Services, InsuranceQuotes.com, CarInsuranceQuotes.com, InsureMe, Bankrate.com.cn, CreditCards.ca, NetQuote.com, and CD.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of nearly 600 local markets in all 50 U.S. states, Bankrate generates over 172,000 distinct rate tables capturing on average over three million pieces of information daily. Bankrate develops and provides web services to over 80 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.

For more information contact:
Kayleen Yates
Senior Director, Corporate Communications
[email protected]
(917) 368-8677

SOURCE Bankrate