Mortgage rates increased, but only slightly, as investors digest world events and assess the potential impact on global economic recovery. The outlook for economic growth, inflation, and a desire to avoid market volatility are the key drivers of bond yields and mortgage rates on a day-to-day basis. Mortgage rates are closely related to yields on long-term government bonds.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed 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 4.96 percent, the monthly payment for the same size loan would be $1,068.76, a difference of $173 per month for anyone refinancing now.
30-year fixed: 4.96% - up from 4.91% last week (avg. points: 0.41)
15-year fixed: 4.16% - up from 4.12% last week (avg. points: 0.38)
5/1 ARM: 3.78% - up from 3.74% last week (avg. points: 0.37)