NEW YORK — Mortgage rates inched slightly higher this week with the benchmark 30-year fixed inching higher to 3.87 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.17 discount and origination points.
The larger jumbo 30-year also saw an increase, rising to 3.78 percent, and the average 15-year fixed mortgage held steady at 3.10 percent. Adjustable mortgage rates mostly followed suit, with the 5-year and 10-year ARMs climbing to 3.33 percent and 3.73 percent, respectively.
Mortgage rates moved upward to the highest point in the past month following a well-received employment report showing better than expected job growth and positive revisions to previous months. This, coupled with a better overall tone of economic data and a rebound in equity markets, comforted investors with the thought that perhaps fears of a recession are overblown. Bonds sold off, with bond yields – which move inversely to prices – rising in response as investors poked their heads out from under the cover of safe haven U.S. Treasuries. Mortgage rates are closely related to yields on long-term government bonds.
At the current average 30-year fixed mortgage rate of 3.82 percent, the monthly payment for a $200,000 loan is $939.90.
30-year fixed: 3.87% — up from 3.82% last week (avg. points: 0.17)
15-year fixed: 3.10% — unchanged from 3.10% last week (avg. points: 0.14)
5/1 ARM: 3.33% — up from 3.32% last week (avg. points: 0.19)
Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.
For a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com/finance/mortgages/mortgage-analysis-031016.aspx