Mortgage rates rise rapidly in concerns over about inflation

NEW YORK
- PRN - GHN News -  The window of opportunity for getting the lowest mortgage
rate may be closing rapidly with the newest announcement of
significantly rising mortgage rates.



The
average conforming 30-year fixed mortgage rate jumped to 4.62 percent,
according to Bankrate.com's weekly national survey. The average 30-year
fixed mortgage has an average of 0.37 discount and origination points.

Specific mortgage rates in local areas have also seen a significant rise, with the rates for each area listed here. 

The
average 15-year fixed mortgage increased to 4.02 percent, and the
larger jumbo 30-year fixed rate soared as well to 5.24 percent.
Adjustable rate mortgages also climbed higher, with the average 5-year
ARM inching higher to 3.71 percent and the average 7-year ARM rising to
4.01 percent.

Mortgage
rates jumped significantly this week, posting a second consecutive
weekly increase since the Federal Reserve announced renewed measures to
boost the economy, according to the newest Bank Rate report.

Worries
that the Fed's quantitative easing program will spark higher inflation,
coupled with stronger economic data on retail sales and weekly
unemployment filings fueled the latest increase. Although mortgage rates
have increased, they remain extremely low in a historical context and
will not be an impediment to well-qualified borrowers for the
foreseeable future.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average 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 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a savings of $214 per month for a homeowner refinancing now.

Bankrate's
national weekly mortgage survey is conducted each Wednesday from data
provided by the top 10 banks and thrifts in the top 10 markets.