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Bankrate: Mortgage Rates Hold Steady Second Week in Row
NEW YORK -- Mortgage rates held steady a second consecutive week, the average 30-year fixed-rate mortgage staying at 6.35%, reports Bankrate.com's following its weekly national survey of large lenders.Last week, the average 30-year fixed-rate mortgage dipped from 6.37% to 6.35%. The mortgages in this week's survey had an average of 0.39 discount and origination point.The 15-year fixed-rate mortgage, popular for refinancing, retreated from 5.74% to 5.71%. Both the jumbo 30-year fixed- rate mortgage and one-year adjustable-rate mortgage declined one basis point to 6.54% and 4.11%, respectively. A basis point is 1/100 of 1% (0.01%).Mortgage rates have shown comparatively little movement the past two weeks compared with the sharp jump over the preceding eight weeks. Mortgage rates have stabilized as investors come to grips with the outlook for higher interest rates, rising oil prices, and global uncertainty. From March 17 through May 12, the average 30-year fixed- rate mortgage rose to 6.37% from 5.41 percent in response to good economic news and long-awaited evidence of job growth. Since then, the average 30-year fixed-rate mortgage has settled at 6.35% as demand for long-term Treasury securities has moderated. Mortgage rates are closely follow the yields on long-term government bonds.Both mortgage rates and monthly mortgage payments are significantly higher than they were two months ago. As of March 31, when the average 30-year fixed-rate mortgage was 5.6%, the monthly payment on a $165,000 loan was $947.23. Today, with the average rate at 6.35%, the monthly payment on the same loan is $1,026.69. The difference of $79.46 per month over the life of the loan amounts to more than $28,600.Survey Results30-year fixed: 6.35% -- unchanged from 6.35% last week (average points: 0.39)15-year fixed: 5.71% -- down from 5.74% last week (average points: 0.37)1-year ARM: 4.11% -- down from 4.12% last week (average points: 0.3)Bankrate's national mortgage survey is conducted each Wednesday and based on data provided by the top 10 banks and thrifts in the top 10 markets. The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. Respondents are fairly evenly split this week, 29% saying rates are headed higher over the next five weeks, 29% saying lower and 42% expecting no change.For a full analysis of this week's move in mortgage rates, visit www.bankrate.com/mortgagerates For the full mortgage Rate Trend Index, visit www.bankrate.com/RTI"