News Column

Bankrate: Mortgage Rates Step Back

May 16, 2014



By a News Reporter-Staff News Editor at Real Estate Weekly News -- Mortgage rates retreated modestly, with the benchmark 30-year fixed mortgage rate pulling back to 4.44 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

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

http://photos.prnewswire.com/prnvar/20130805/FL58072LOGO

The average 15-year fixed mortgage rate slumped to 3.51 percent, while the larger jumbo 30-year fixed mortgage rate ticked down to 4.45 percent. Adjustable rate mortgages were mixed, with the 3-year ARM sliding to 3.25 percent and the 5-year nosing higher to 3.35 percent.

Despite the abysmal economic performance in the first quarter of the year brought on by the brutal winter weather, both the temperatures and the broader economy are starting to warm up. The Federal Open Market Committee gave a nod to a pickup in economic activity and household spending, and maintained the tapering of bond purchases by scaling back an additional $10 billion in monthly purchases. With the Fed avoiding any market-unsettling surprises, the focus now turns to the monthly jobs report. The employment report is the next likely catalyst for movement in bond yields and mortgage rates. Mortgage rates are closely related to yields on long-term government bonds.

On May 1, 2013, 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. Now one year later, with the average rate at 4.44 percent, the monthly payment for the same size loan would be $1,006.25, a difference of $106 per month for anyone that waited.

Keywords for this news article include: Real Estate, Bankrate Inc., Mortgage Rates.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Real Estate Weekly News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters