Mortgage rates climbed this week after investors became less pessimistic about the financial crisis in Europe and the employment market in the United States. But rates remain near all-time lows and are expected to stay at those levels at the expense of the economy.
30 year fixed rate mortgage – 3 month trend
The benchmark 30-year fixed-rate mortgage rose 16 basis points this week, to 4.37 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.4 discount and origination points. One year ago, the mortgage index was 4.47 percent; four weeks ago, it was 4.32 percent. This is the highest the 30-year fixed has been since Aug. 31, when it was 4.37 percent.
This is the key analysis from Bankrate.
The benchmark 15-year fixed-rate mortgage rose 13 basis points, to 3.59 percent. The benchmark 5/1 adjustable-rate mortgage rose 15 basis points, to 3.26 percent, and the jumbo 30-year fixed rose 8 basis points, to 4.9 percent
The upward trend is not expected to last. The rate on 30-year fixed mortgages isn't expected to rise beyond 4.5 percent until late 2012, according to the MBA's forecast. Of course, a shift in the economy or any major event that affects the global markets could change that projection in minutes.