Mortgage Rates Rebound Following President's Speech

By Newsroom America Staff at 3 Mar 2017

(Newsroom America) -- Mortgage rates moved up slightly from one week ago, with the benchmark 30-year fixed mortgage rate nosing higher to 4.31 percent, according to Bankrate.com's weekly national survey.

The 30-year fixed mortgage has an average of 0.27 discount and origination points.

The larger jumbo 30-year fixed increased to 4.30 percent and the average 15-year fixed mortgage rate inched higher to 3.49 percent. Adjustable mortgage rates also moved up, with the 5-year ARM rising to 3.48 percent and the 10-year ARM returning to 3.87 percent.

Mortgage rates had moved lower for a few days as skepticism in financial markets about fiscal policy changes began to grow. But that all changed following President Trump's speech before a joint session of Congress, with the fervor for lower taxes, less regulation and more infrastructure spending renewed.

Both bond yields and mortgage rates moved higher, with mortgage rates more than erasing the declines seen in the preceding week. Mortgage rates are closely related to yields on long-term government bonds.

At the current average 30-year fixed mortgage rate of 4.31 percent, the monthly payment for a $200,000 loan is $990.92.

SURVEY RESULTS

30-year fixed: 4.31% -- up from 4.29% last week (avg. points: 0.27) 15-year fixed: 3.49% -- up from 3.48% last week (avg. points: 0.23) 5/1 ARM: 3.48% -- up from 3.45% last week (avg. points: 0.28)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top 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. The majority of panelists, 70 percent, expect mortgage rates to keep climbing, while 30 percent predict that mortgage rates will remain more or less unchanged in the coming week. None of this week's respondents expect a decline in mortgage rates over the next week.

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