Bankrate: Mortgage Rates Rise Following Employment Report
July 14 2005 - 7:30AM
PR Newswire (US)
Bankrate: Mortgage Rates Rise Following Employment Report NEW YORK,
July 14 /PRNewswire-FirstCall/ -- Mortgage rates climbed for the
second week in a row as a lukewarm employment report dispelled
fears of both an economic slowdown and higher inflation. The
average 30-year fixed rate mortgage climbed from 5.7 percent to
5.76 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 0.39 discount and origination points. The
15-year fixed rate mortgage popular for refinancing ascended to
5.36 percent from 5.29 percent. The average rate for the jumbo
30-year fixed rate mortgage hit the 6 percent mark, rising from
5.95 percent. Adjustable rate mortgages were mixed, with the
average 5/1 adjustable rate mortgage jumping from 5.27 percent to
5.35 percent, while the one-year ARM dipped to 4.71 percent from
4.76 percent one week ago. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO ) The monthly
employment report issued Jul. 8 showed moderate job growth in the
month of June. While this type of report would not normally cause
interest rates to rise, it did reinforce the notion of the
"Goldilocks economy," one that is not too hot, but not too cold
either. With things not as bad as the pessimists thought but not as
strong as the optimists predicted, there were fewer fears about an
economic downturn or potentially higher labor costs that would
induce inflation. In response to both, bond investors sold
long-term Treasury securities. Mortgage rates are closely related
to yields on long-term government bonds. Yields on ten-year
Treasury notes have climbed from 3.94 percent to 4.16 percent since
the Fed raised rates for the ninth time on June 30, pushing
mortgage rates up in each of the past two weeks. Fixed mortgage
rates remain very low, and so too do monthly payments. One year
ago, the average 30-year fixed mortgage rate was 6.11 percent. At
the time, the monthly payment on a $165,000 loan was $1,000.96.
With the average rate now 5.76 percent, the monthly payment on the
same $165,000 loan is $963.94. Refinancing now would save $37 each
month, or more than $13,300 over the loan term. SURVEY RESULTS
30-year fixed: 5.76% -- up from 5.7% last week (avg. points: 0.39)
15-year fixed: 5.36% -- up from 5.29% last week (avg. points: 0.39)
5/1 ARM: 5.35% -- up from 5.27% 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. Respondents are split this week, with 40 percent expecting
rates to remain unchanged in the next 30-45 days, and 40 percent
predicting rates will retreat from current levels. The remaining 20
percent expect rates to keep climbing. 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. In 2004,
Bankrate.com had over 38 million unique visitors. 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 more than 100 national and state publications.
NOTE TO EDITORS: Interviews: The reporters, financial experts and
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Kayleen Keneally Director, Corporate Communications
http://www.bankrate.com/broadcast 917-368-8677
http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO
http://photoarchive.ap.org/ DATASOURCE: Bankrate, Inc. CONTACT:
Kayleen Keneally, Director, Corporate Communications, Bankrate,
Inc., +1-917-368-8677, or Web site: http://www.bankrate.com/
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