Mortgage Rates Up on GM and Treasury News

Mortgage rates rose this week, with the average 30-year fixed mortgage rate rising to 5.45%. The average 15-year fixed rate mortgage climbed to 4.86% and the average jumbo 30-year fixed rate is back up to 6.60%. This comes after weeks of stable rates and represents their highest point since early February.

According to Bankrate.com, the potential General Motors bankruptcy and a week of substantial government borrowing caused the rates to rise. Yields on benchmark Treasury yields increased as a glut of new supply hit the market, and the prospect of a significant corporate bankruptcy further agitated would-be bond investors.

While mortgage rates are up, they remain significantly down from a year ago when the average 30-year fixed mortgage rate was 6.20%. At that time a $200,000 loan would have carried a monthly payment of $1,224.94. In today’s market, the payment on that same loan would be $1,129.31, a decrease of $95 per month.

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