May 23, 2013
/PRNewswire/ -- Mortgage rates increased for a third consecutive week, with the benchmark 30-year fixed mortgage rate rising to 3.74 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.32 discount and origination points.
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The average 15-year fixed mortgage climbed to 2.97 percent, while the larger jumbo 30-year fixed mortgage rate held steady at 3.99 percent. Adjustable rate mortgages were mixed, with the 1-year adjustable sliding to 2.95 percent, the popular 5-year ARM notching higher to 2.70 percent and the 7-year ARM remaining at 2.87 percent.
Federal Reserve Chairman
indicated that, for now, the Fed's bond-buying activities will continue. The Fed has been buying
in long-term bonds each month in an effort to keep a lid on mortgage rates, among other things. Mortgage rates are closely related to yields on long-term government and mortgage-backed bonds. While the job market has shown improvement, the Fed wants to make sure the improvement is sustained, opting to maintain the stimulus rather than pulling the plug too soon.
The last time mortgage rates were above 5 percent was
. At the time, the average 30-year fixed rate was 5.07 percent, meaning a
loan would have carried a monthly payment of
. With the average rate currently at 3.74 percent, the monthly payment for the same size loan would be
, a difference of
per month for anyone refinancing now.
30-year fixed: 3.74% -- up from 3.71% last week (avg. points: 0.32)15-year fixed: 2.97% -- up from 2.92% last week (avg. points: 0.31)5/1 ARM: 2.70% -- up from 2.68% last week (avg. points: 0.23)