Mortgage rates post first increase of 2016
This is according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.19 discount and origination points.
The larger jumbo 30-year fixed moved up to 3.75 percent, and the average 15-year fixed mortgage clawed back to 3.12 percent.
Adjustable mortgage rates were on the rise too, with the 5-year and 7-year ARMs both retracing some of the recent decline, stepping up to 3.28 percent and 3.43 percent, respectively.
Mortgage rates bounced off the nearly 3-year lows of last week as financial markets rebounded a bit. However, the increase was minor as markets remain jittery. As a result, mortgage rates are still lower than they were two weeks ago.
The decreased likelihood of higher interest rates, not to mention the implementation of negative interest rates in Japan, has kept demand high for the safety of U.S. government debt and both bond yields and mortgage rates low. Mortgage rates are closely related to yields on long-term government bonds.
At the current average 30-year fixed mortgage rate of 3.85 percent, the monthly payment for a $200,000 loan is $937.62. ■