Home Loan Rates Jump Over 5%

Home loan rates jumped again recently, with the average rate on the standard conforming 30-year fixed home loan rate climbing to 5 percent, based on Bankrate.com’s weekly nationwide review. The typical 30-year fixed home loan has an average of 0.40 discount and origination points.

To determine home loan rates in your neighborhood, visit http://www.bankrate.com/funnel/mortgages/.

The standard 15-year fixed home loan raised to 4.37 percent, as well as the bigger jumbo 30-year fixed rate did as well, climbing to 5.58 percent. Variable rate home loans are also higher, with the typical 5-year ARM leaping to 3.95 percent as well as the standard 7-year ARM rising to 4.36 percent.

The typical 30-year fixed home loan rate hit 5 percent for the first time since May mainly because the latest run-up in home loan rates continued. On Nov. 3, home loan rates have been at a record low of 4.42 percent. This week, solid retail sales, a far more bullish economic outlook, and loads of government red ink had bond investors commanding higher yields. Home loan rates tend to be closely related to yields on long-term government bonds.

The last time home loan rates had been over 6 percent was Nov. 2008. During that time, the typical rate was 6.33 percent, meaning a $200,000 mortgage would have carried a payment per month of $1,241.86. With the typical rate now 5 percent, the monthly payment for the similar size loan would be $1,073.64, a cost savings of $168 per month for a homeowner mortgage refinancing now.

30-year fixed: 5.00% — up from 4.89% last week (avg. points: 0.40)
15-year fixed: 4.37% — up from 4.26% last week (avg. points: 0.38)
5/1 ARM: 3.95% — up from 3.85% last week (avg. points: 0.45)

Bankrate’s national weekly home loan review is performed each Wednesday from data supplied by the top 10 financial institutions and thrifts within the top 10 markets.

For a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com.

If you are thinking of buying or selling a home, condo or investment property call me Mark Spector 310-430-0633