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Bankrate: Mortgage Rates Rise 7th Straight Week
NEW YORK -- Mortgage rates continued to increase sharply this week, the average 30-year fixed rate mortgage shooting up to 6.18% from 6.07%, reports Bankrate.com's weekly national survey of large lenders. The mortgages in this week's survey had an average of 0.40 discount and origination points.In the past seven weeks, the average 30-year fixed rate mortgage has increased more than 0.75%, to 6.18% from 5.41%. The last time mortgage rates were this high was last Sept. 22, when the 30-year fixed stood at 6.22%. The 15-year fixed rate mortgage, popular for refinancing, climbed to 5.52% from 5.4%. The jumbo 30-year fixed rate mortgage leaped 12 basis points to 6.37%, while the one year adjustable rate mortgage moved up 5 basis points to 3.90%. A basis point is 0.01% -- 1/100 of a percent.Mortgage rates have gone up seven weeks in a row. The rise has happened in four stages:In late March, speculation was widespread that Japan's central bank would reduce its purchases of U.S. government debt and that an employment report due April 2 would contain good news.The March employment report, released April 2, did indeed bear unexpectedly good news.It said that the U.S. economy had created a net 308,000 jobs in the third month.Job-creation numbers for the two previous months were revised upward, too.The consumer price index released April 14 suggested that inflation had revived after lying dormant three years.The Fed's panel who sets rates rates met this week and kept a key short-term rate steady, but broadly hinteda rate hike is likely this summer or fall. Once again, investors speculated that an upcoming April employment report, due Friday, would bring good news.Each of these events caused mortgage rates to rise 5 to 20 basis points, after which they held steady a few days -- until the next event.Monthly mortgage payments have followed the rates' seven week upward trajectory. With the average 30-year fixed rate mortgage at 6.18%, the monthly payment for a $165,000 30-year fixed rate mortgage is $1,008.43. Seven weeks ago, when the average rate was 5.41%, the monthly payment on the same loan was $927.56 -- almost $81 per month less. Over the life of the loan, the extra payments add up to $29,113. SURVEY RESULTS 30-year fixed: 6.18% -- up from 6.07% last week (average points: 0.40) 15-year fixed: 5.52% -- up from 5.4% last week (average points: 0.39)1-year ARM: 3.90% -- up from 3.85% last week (average points: 0.29)Bankrate's national weekly mortgage survey is conducted each Wednesday and based on data provided by the top 10 banks and thrifts in the top 10 U.S. 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. The panel expects rates to pause, 57% saying rates will remain unchanged in the next five weeks. Another 29% says rates will drop; 14% predict rates will rise.For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI About Bankrate, Inc.Bankrate Inc. (NASDAQ:RATE) owns and operates Bankrate.com, the Internet's leading consumer banking marketplace. Bankrate.com averages five million unique visitors per month, according to comScore Media Metrix, which ranks Bankrate.com first in unique visitors in the "Financial Information and Advice" category. Bankrate.com reviews more than 4,800 financial institutions in more than 300 markets in 50 states. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes and small business finance. It is the leading aggregator of more than 250 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and certificates of deposit, checking and automated teller machine fees, home equity loans and online banking fees. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (NASDAQ:YHOO), America Online (NYSE:TWX), The Wall Street Journal (NYSE:DJ) and The New York Times (NYSE:NYT) . Bankrate.com's information is also distributed through more than 100 national and state publications. The company's stock is included in the Russell 3000 Index and the Russell 2000 Index.Visit Bankrate at www.bankrate.com"