Bankrate says mortgage rates increased for third consecutive week - Update

Thu. October 02, 2008; Posted: 10:28 AM

(RTTNews) - Thursday, Bankrate, Inc. (RATE | Quote | Chart | News | PowerRating), operator of an Internet-based consumer banking and personal finance network, said mortgage rates increased for the third consecutive week, with the average 30-year fixed mortgage rate rising to 6.41% from last week's 6.32%. The average 15-year fixed rate mortgage popular for refinancing notched higher to 6.14% from 6.11%, while the average jumbo 30-year fixed rate climbed to 7.65%. Adjustable mortgage rates were mixed, with the average 1-year adjustable-rate mortgage, or ARM, sharply lower at 6.04%, while the average 5/1 ARM jumped to 6.49% from 6.38% last week.

According to Bankrate.com's weekly national survey, the average 30-year fixed mortgage has an average of 0.42 discount and origination points. Bankrate's national weekly mortgage survey is conducted each Wednesday from information provided by the top 10 banks and thrifts in the top 10 markets.

According to the North Palm Beach, Florida-based company, mortgage rates moved higher this week despite benchmark Treasury yields being largely unchanged, compared to one week ago. Mortgage rates are linked to bond yields.

Bankrate said the tightening grip of the credit crunch means a return to wider mortgage spreads, representing the difference between mortgage rates and the risk-free ten-year Treasury.

Though this risk premium had narrowed following the government takeover of Fannie Mae and Freddie Mac, spreads expanded following the defeat of the financial rescue package.

This year has been a wild ride for mortgage rates, with a low in January of 5.57% and a high of 6.77% in July. At the latest rate of 6.41%, a $200,000 loan carries a monthly payment of $1,252.32.

The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, where a panel of mortgage experts predicts which way the rates are headed over the next 30-45 days. Two-thirds or 67% of respondents expect rates to retreat in the coming weeks, while 13% predict a further increase in mortgage rates. The remaining 20% forecast that mortgage rates will remain more or less unchanged during the period.

RATE is currently trading at $37.03, down $0.98 or 2.58%, on 19,095 shares. For the past year, the stock trended in the range of $24.54-$57.32.

For full details on Bankrate Inc (RATE) click here. Bankrate Inc (RATE) has Short Term PowerRatings of 6. Details on Bankrate Inc (RATE) Short Term PowerRatings is available at This Link.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.