Dec. 20, 2012
/PRNewswire/ -- Mortgage rates posted the biggest one week increase since March, with the benchmark 30-year fixed mortgage rate jumping from 3.52 percent to 3.62 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.31 discount and origination points.
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The average 15-year fixed mortgage rate was up more modestly to 2.89 percent and the larger jumbo 30-year mortgage climbed back over the 4 percent threshold to 4.07 percent. Adjustable rate mortgages were mostly higher, with the 3-year ARM moving to 2.93 percent and the 5-year ARM now at 2.78 percent, both the highest since August.
Mortgage rates posted these sudden increases following last week's announcement of additional stimulus by the Federal Reserve. While this newly announced bond-buying program is designed to keep long-term interest rates and mortgage rates low, the initial reaction was opposite because of concerns that the Fed's printing of more money would eventually lead to higher inflation. Not to worry, however, as the fiscal cliff issue is still at center stage and as year-end draws closer without an agreement, that is likely to push bond yields and mortgage rates back down.
The last time mortgage rates were above 6 percent was
. At the time, the average 30-year fixed rate was 6.33 percent, meaning a
loan would have carried a monthly payment of
. With the average rate now 3.62 percent, the monthly payment for the same size loan would be
, a difference of
per month for anyone refinancing now.
30-year fixed: 3.62% -- up from 3.52% last week (avg. points: 0.31)