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31 December 2010 ~ Comments Off

Mortgage rates steadily climbing

Ayinde O. Chase – AHN News Editor

New York, NY, United States (AHN) – Mortgage rates continued to climb higher this week, with the average conforming 30-year fixed mortgage rising to 5.02 percent.

Bankrate.com’s weekly national survey also reported the average 15-year fixed mortgage increased to 4.39 percent and the larger jumbo 30-year fixed rate rose to 5.64 percent. Adjustable rate mortgages also went up, with the average 5-year ARM rising to 4 percent and the average 7-year ARM reaching 4.43 percent.

The last time mortgage rates were above 6 percent was November 2008. Then, 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 5.02 percent, the monthly payment for the same size loan would be $1,076.09, a savings of $166 per month for a homeowner refinancing now.

More than half of Bankrate’s analysts believe mortgage rates will continue to rise.

Article © AHN – All Rights Reserved

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