A rebounding economy and strong corporate earnings - not turmoil in Egypt - were the forces powering mortgage rates this week. News showing continued strength in manufacturing, higher consumer spending, and robust corporate earnings offset Federal Reserve bond purchases, with bond yields moving slightly higher. Mortgage rates are closely related to yields on long-term Treasury notes. But despite the uptick, mortgage rates remained within the well-established range that has prevailed since mid-December.
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 5.02 percent, the monthly payment for the same size loan would be $1,076.09 a savings of $165.77 per month for a homeowner refinancing now.
30-year fixed: 5.02% - up from 4.97% last week (avg. points: 0.40)
15-year fixed: 4.29% - up from 4.28% last week (avg. points: 0.39)
5/1 ARM: 3.84% - unchanged from 3.84% last week (avg. points: 0.37)