NEW YORK, Nov. 10 /PRNewswire/ -- Mortgage rates continued to climb, with
fixed rate mortgages reaching the highest level since Sept. 2003. The average
30-year fixed rate mortgage increased from 6.37 percent to 6.42 percent,
according to Bankrate.com's weekly national survey of large lenders. The
30-year fixed rate mortgages in this week's survey had an average of
0.32 discount and origination points.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
The average 15-year fixed mortgage rate increased as well, rising from
5.91 percent to 5.96 percent, while the average jumbo 30-year fixed rate
climbed to 6.6 percent from 6.54 percent last week. Adjustable rate mortgages
followed suit, with the average 5/1 adjustable rate mortgage notching higher
from 5.9 percent to 5.94 percent, while the average one-year ARM bounded
higher from 5.35 percent to 5.44 percent.
Inflation concerns continue to push mortgage rates higher. The monthly
employment report released Nov. 4 showed a surprising jump in average hourly
wages, and this fueled further inflation fears. Inflation threatens to erode
the fixed payments that bondholders receive, so bond yields and mortgage rates
increased. Mortgage rates are closely related to yields on long-term
government bonds.
After defying predictions for so long, fixed mortgage rates have increased
significantly since the beginning of September. The average 30-year fixed
mortgage rate on Sept. 7 was 5.8 percent, meaning that the monthly payment on
a loan of $165,000 was $968.14. With the average 30-year fixed rate now 6.42
percent, the same loan would now carry a payment of $1,034.25. Failing to lock
in a mortgage rate two months ago results in a monthly payment increase of
$66.11 per month, and would amount to additional interest costs of nearly
$23,800 over the loan term.
SURVEY RESULTS
30-year fixed: 6.42% -- up from 6.37 percent last week (avg. points: 0.32)
15-year fixed: 5.96% -- up from 5.91% last week (avg. points: 0.34)
5/1 ARM: 5.94% -- up from 5.9% last week (avg. points: 0.32)
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 forward-looking Rate Trend
Index, in which a panel of mortgage experts predicts which way the rates are
headed over the next 30 to 45 days. This week the panel is evenly split, with
half of respondents expecting rates to rise further. The other half expects
rates to decline from current levels in the next 30 to 45 days.
For a full analysis of this week's move in mortgage rates, go to:
http://www.bankrate.com/mortgagerates
For the full mortgage Rate Trend Index, go to:
http://www.bankrate.com/RTI
About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE) owns and operates Bankrate.com, the
Internet's leading consumer banking marketplace. Bankrate.com is a destination
site of personal finance channels, including banking, investing, taxes and
small business finance. It is the leading aggregator of more than 300
financial products, including mortgages, credit cards, new and used auto
loans, money market accounts and CDs, checking and ATM fees, home equity loans
and online banking fees. Bankrate.com reviews more than 4,800 financial
institutions in more than 580 markets in 50 states. Bankrate.com had over 38
million unique visitors in 2004. Bankrate.com provides financial applications
and information to a network of more than 75 partners, including Yahoo!
(Nasdaq: YHOO), America Online (NYSE: TWX), The Wall Street Journal (NYSE: DJ)
and The New York Times (NYSE: NYT). Bankrate.com's information is also
distributed through approximately 100 national and state publications.
NOTE TO EDITORS:
Interviews: The reporters, financial experts and management team are
available for print, Web, radio and TV interviews -- live or taped.
Analysis, fact checking: Our personal finance experts can offer insights,
quotes, background, research and rate data.
Radio: The Bankrate Personal Finance Minute for radio is available for
broadcast. Multiple talkers available for shows -- live or taped.
TV: Our experts are experienced with live and taped segments. We have
talkers available via satellite feed.
Print/Web: Award-winning reporters and editors creating thousands of
evergreen and fresh articles for your paper or site.
Editor Alert: Receive breaking news from Bankrate via your e-mail:
http://www.bankrate.com/editorsalert
Learn more about Bankrate management:
http://www.bankrate.com/coinfo/staff.asp
Use Bankrate.com's Press Page: http://www.bankrate.com/broadcast
For more information contact:
Kayleen Keneally
Director, Corporate Communications
http://www.bankrate.com/broadcast
kkeneally@bankrate.com
917-368-8677
SOURCE Bankrate, Inc.
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Photo Notes:
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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
Related links:
http://www.bankrate.com
CONTACT:
Kayleen Keneally, Director, Corporate
Communications, +1-917-368-8677, or kkeneally@bankrate.com
EDITORS' ADVISORY: The information contained in this release is
available for print or broadcast with attribution to Bankrate.com
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