Mortgage Rates Rebound After Better Jobs Report: Bankrate

By Newsroom America Staff at 9 May 2013

(Newsroom America) -- After declining for seven straight weeks, mortgage rates moved higher following better than expected news about jobs, with the benchmark 30-year fixed mortgage rate increasing to 3.6 percent, according to's weekly national survey.

The average 15-year fixed mortgage jumped to 2.82 percent, while the larger jumbo 30-year fixed mortgage rate settled at the 4 percent mark. Adjustable rate mortgages were mostly higher, with the 5-year nosing higher to 2.64 percent and the 10-year ARM climbing to 3.2 percent.

Mortgage rates had fallen for seven consecutive weeks, to levels that were at, or near, record lows.

But says the April jobs report was better than expected and helped sway sentiment about the economy.

"Both bond yields and mortgage rates increased, as mortgage rates are closely related to yields on long-term government bonds. So much of the economy's health is gauged by job growth, and this month's report came on the heels of a lousy March jobs report and some other soft economic data in recent weeks. In particular, the number of new jobs was revised upward for each of the two previous months," it said.

SURVEY RESULTS 30-year fixed: 3.60% -- up from 3.52% last week (avg. points: 0.31) 15-year fixed: 2.82% -- up from 2.75% last week (avg. points: 0.31) 5/1 ARM: 2.64% -- up from 2.63% last week (avg. points: 0.23)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days.

Just more than half of respondents don't expect much change in mortgage rates over the coming week, with 54 percent forecasting that mortgage rates will remain more or less unchanged. The remainder were evenly split between predicting an increase (23 percent) and predicting a decline (23 percent).


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