Mortgage rates continued to move higher for the week ending January 25, 2013.  The rise in mortgage interest rates has not been devastating to new borrowers, as of yet, but the concerns over continued rising interest rates is worrying the market.  In the meantime, mortgage applications are on the rise with purchase activity increasing and refinance applications continuing to hold very strong.

The economy continues to show signs of strength with unemployment claims falling again this past week, the stock market pushing up to multi year highs and the global economy stabilizing in the weaker sectors such as Europe and expanding in the hotter regions of Asia.  These factors are putting pressure on interest rates and most market prognosticators are calling for rising interest rates in the near future.  Meanwhile, the Fed holds some key cards in the game with a monetary easing program that involves the purchase of mortgage backed bonds and Treasury bonds at rather sizeable levels. 

Whether economic conditions will improve further remains uncertain however, an expanding housing market is now filling in a major week spot in economic growth that had been present over the past three years and if the world economies hold and show some growth combined with our economy getting assistance from a better housing market, mortgage rates are surely going to rise.  How much will mortgage rates rise?  Banks are awash in reserves and cash for now and the Fed has not even let up on the throttle of monetary stimulus yet, let alone put on the brakes.  Not much help with that one. 

To start the week of January 28, the current bank mortgage rate survey conducted by showed the 30 year fixed rate mortgage averaged 3.587 percent, up from 3.515 percent last week.

The 30 year jumbo mortgage rate moved higher, but by a slightly lower magnitude than was experienced on the 30 year conventional loan.  Jumbo mortgage rates averaged 3.863 percent in the current survey as compared to 3.824 percent in the week earlier.

FHA mortgage rates increased closer to the levels of the jumbo loans as opposed to the rise found in the conventional rates.  The average 30 year FHA mortgage rate ratcheted up to 3.463 percent from 3.430 percent in the previous week.

The most popular short term mortgage loans, the 15 year term loans, were driven higher by just under six basis points.  One basis point is equal to 1/100th of a percent.  The average 15 year fixed rate loan came in at 2.842 percent, ahead of last week’s average rate of 2.783 percent.

Ten and 20 year mortgage rates were lifted by amount similar to the 15 year term home loans.  The rate on the 20 year mortgages moved up to 2.842 percent from 2.783 while the average rate on the 10 year mortgage was boosted up to 2.723 percent from 2.679 percent in the week prior week.

Mortgage application data coming from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey showed that mortgage applications had jumped by 7.0 percent from the preceding week.  Purchase applications increased but the refinance share of mortgage application remained quite strong with 82 percent of all mortgage applications logged in as refinance requests.  The most recent Mortgage Bankers Association’s data is for the week ending January 18, 2013.  

To review a current list of the top bank mortgage lenders and mortgage rates for the January 25, 2013 weekly bank mortgage rate survey please see the following mortgage rate tables: 30 year mortgage rates, 15 year mortgage rates, 20 year mortgage rates, 10 year mortgage rates, FHA mortgage rates and jumbo mortgage rates.

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