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TheStreet Open House

Bankrate: Mortgage Rates Jump To 2-Year High

Stocks in this article: RATE

NEW YORK, Aug. 22, 2013 /PRNewswire/ -- Fixed mortgage rates climbed this week, with the benchmark 30-year fixed mortgage rate jumping to the highest point in more than two years at 4.74 percent, according to Bankrate.com's weekly national survey. The average 30- year fixed mortgage has an average of 0.28 discount and origination points.

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To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage bounded higher to 3.75 percent, while the larger jumbo 30-year fixed mortgage rate leapt to 4.88 percent. Adjustable rate mortgages were mostly higher, reaching levels not seen since April 2011, with the popular 5-year adjustable rate now 3.69 percent and the 7-year ARM at 4.04 percent.  

Mortgage rates moved higher as investors took a glass half full outlook on economic data, particularly weekly unemployment claims filings. Bond yields, to which mortgage rates are closely related, increased to two-year highs on speculation of a September start to tapering of the Federal Reserve's bond purchases. While nothing is official yet, and likely won't be at least until we get to the other side of the jobs report in early September, the markets have clearly priced in the expectation of Fed tapering at that point.

As recently as May 1 st, the average 30-year fixed mortgage rate was 3.52 percent. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.74 percent, the monthly payment for the same size loan would be $1,042.09, a difference of almost $142 per month for anyone that waited too long.

SURVEY RESULTS

30-year fixed: 4.74% -- up from 4.57% last week (avg. points: 0.28)

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