Mortgage Rates a Mixed Bag

^{Published on 2011-01-27 04:40:47 - Market Wire}
 

Bankrate: Mortgage Rates a Mixed Bag -- NEW YORK, Jan. 27, 2011 /PRNewswire/ --

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NEW YORK, Jan. 27, 2011 /PRNewswire/ -- Mortgage rates showed little movement again this week, with the benchmark conforming 30-year fixed mortgage rate nosing higher to 4.97 percent according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.44 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 inched lower to 4.28 percent, while the larger jumbo 30-year fixed rate increased to 5.53 percent. Adjustable rate mortgages were mixed, with the average 5-year ARM slipping to 3.84 percent and the 7-year ARM rising to 4.21 percent.  

Fixed mortgage rates have shown very little movement over the past month and are essentially unchanged since the first of the year. This comes after a significant increase in mortgage rates from early November through mid-December. But with mortgage rates stabilized, the Federal Reserve is unwilling to rock the boat. The Fed's post-meeting statement on Jan. 26 was little changed from the previous meeting in December and gave no indication that changes to interest rates or the bond purchase program are likely. The Fed would be perfectly happy to see mortgage rates stay right where they are, so expect their bond buying and principal reinvestments to continue at a pace necessary to do so.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.97 percent, the monthly payment for the same size loan would be $1,069.98, a savings of $171 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 4.97% -- up from 4.95% last week (avg. points: 0.44)

15-year fixed: 4.28% -- down from 4.29% last week (avg. points: 0.41)

5/1 ARM: 3.84% -- down from 3.86% last week (avg. points: 0.38)

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 overwhelming majority of panelists – 87 percent – don't expect much movement at all in mortgage rates, saying they'll be more or less unchanged over the next week. The remaining 13 percent predicts an increase in mortgage rates, while none of the panelists forecasts a decrease over the next seven days.

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

About Bankrate, Inc.

The Bankrate network of companies includes [ Bankrate.com ], [ Interest.com ], [ Mortgage-calc.com ], [ Nationwide Card Services ], [ Savingforcollege.com ], [ Fee Disclosure ], [ InsureMe ][ CreditCardGuide.com ], [ Bankaholic ], [ CreditCards.com ] and [ NetQuote ].  Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on 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 575 markets in 50 states. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: AOL), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers.  Bankrate, Inc. was acquired by Apax Partners, one of the world's leading private equity investment groups, in September 2009.  Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience. For more information on Apax, visit: [ www.Apax.com ].

SOURCE Bankrate, Inc.

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