The benchmark 30-year fixed mortgage rate ticked up slightly to 4.19 percent according to Bankrate’s weekly national survey.
“Mortgage rates were up again this week as the tone of U.S. economic data remains positive. The improving U.S. economy is overshadowing the Greek debt crisis, at least as far as the bond market is concerned,” an official release from Bankrate states. “Continued improvement in the economy further cements the idea that the Federal Reserve is moving ever closer to raising interest rates.”
Still, it seems Americans aren’t intimidated, with mortgage applications increasing 1.6 percent last week over the week prior.
"We're seeing rates tick up a little bit, but it doesn't seem to be affecting people's appetite to borrow," David Cary, a mortgage broker at C2 Financial Corp. in the San Francisco Bay Area told Bankrate. "People are getting the sense that rates are going to move higher, and sometimes when that becomes the consensus view, that's when they take action."
That 30-year fixed rate has seen an aggressive increase since mid-April, when the market experienced the lowest two-year point at 3.79 percent.
“At that time, a $200,000 loan would have carried a monthly payment of $930.78,” the release states. “With the average rate now at 4.19 percent, the monthly payment for the same size loan would be $976.87, a difference of $46 per month for anyone that waited just a bit too long.”
However, while the 30 year mortgage rate saw a hike, the average 15-year fixed mortgage fell to 3.34 percent and the jumbo 30-year fixed mortgage dropped to 4.18 percent.
“This is just the second time the average rate for the jumbo 30-year fixed rate mortgage is below that of the conventional 30-year fixed mortgage, the last coming in April 2014,” the release states. “Adjustable rate mortgages were mostly higher, with the 5-year ARM rising to 3.25 percent, and the 7-year ARM stepping up to 3.5 percent.”
Mortgage rates have hit a nine month high in the wake of continued economic recovery, according to Bankrate Inc.