MORTGAGE RATES STABILIZE

Mortgage Rates Stabilize March 10, 2011 Mortgage rates showed little change this week, with the benchmark conforming 30-year fixed mortgage rate now 5.04%, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.42 discount and origination points. The average 15-year fixed mortgage was a touch higher at 4.32%, while the larger jumbo 30-year fixed rate settled slightly lower at 5.58%. Adjustable rate mortgages were mixed, with the average 3-year ARM down slightly to 3.84% and the 5-year ARM ticking up to 3.88%. Movement in mortgage rates was balanced out by unrest in the Middle East, spiking oil prices, and an upbeat employment report for February. While the risk to the economy from higher oil prices remains, the pickup in job growth was enough to keep a floor under mortgage rates, for this week at least. Yields on long-term government bonds, to which mortgage rates are closely related, have yo-yoed up and down in recent days. Signs of economic strengthening lead to higher bond yields and mortgage rates, while concerns about weakness lead rates lower. Source: Bankrate.com Copyright 2011 NATIONAL ASSOCIATION OF REALTORS