The benchmark 30-year fixed mortgage rate jumped to 4.74%, its highest point in over 24 months, says Bankrate.com’s weekly national survey.
The median 15-year fixed mortgage rose to 3.75%, and the larger jumbo 30-year fixed mortgage “skyrocketed to 4.88%”, the report informed (jumbo loans, unlike conventional loans, do not have set limits imposed by Fannie Mae and Freddie Mac).
Overall, adjustable rate mortgages also rose to their highest levels since April 2011.
The 5-year adjustable rate now stands at 3.69%, while the 7-year ARM is at 4.04%.
Latest economic data pushing up mortgage rates
Investors’ optimistic take on latest economic data pushed up mortgage rates, experts say, especially news on weekly unemployment claims filings.
Bond yields also rose to two-year highs, mainly in response to speculation that the Federal Reserve will start easing off on bond purchases in September. Mortgage rates and bond yields are closely linked.
What changes the Fed might make on its bond purchasing will not be officially known until the jobs report in early September. However, it is clear that the markets have priced in an expected shift.
On May 1st, the average 30-year fixed mortgage rate stood at 3.52%. Then, a $200,000 mortgage would have carried monthly payback installments of $900.32.
The same size loan at the current 4.74% would push up those monthly payments by $142 to $1,042.09.
Mortgage rates survey results
- 30-year fixed – up from 4.57% last week to 4.74% (avg. points: 0.28)
- 15-year fixed – up from 3.61% last week to 3.75% (avg. points 0.22)
- 5/1 ARM – up from 3.61% last week to 3.69% (avg. points: 0.22)
The national weekly mortgage rates survey is issued by Bankrate every Wednesday. Data are gathered from the top 10 banks and thrifts in the top ten markets.
According to the report, half of the members of a panel of mortgage experts expect rates to carry one rising, while one third believe rates will remain pretty much the same over the next seven days. Seventeen percent of them believe rates will pull back.
This web page shows mortgage rates in your area.