Fixed mortgage rates have increased for the second week in a row, with the average 30-year fixed rate mortgage rising from 5.75 percent to 5.84 percent. The average 30-year fixed rate mortgage has increased from 5.71 percent two week ago, according to
Bankrate.com's weekly national survey of large lenders. The 30-year fixed rate
mortgages in this week's survey had an average of 0.35 discount and origination points.

The 15-year fixed rate mortgage popular for refinancing increased also,from 5.14 percent to 5.24 percent. The average rate for the jumbo 30-year fixed rate mortgage climbed back above the 6 percent mark, from 5.97 percent to 6.04 percent, while the average one-year adjustable rate mortgage dipped from 4.21 percent to 4.13 percent.

Mortgage rates have fallen in recent months as the bond market rallied on economic pessimism. Rates have increased in the past couple of weeks as bond investors have taken profits from the rally, with bond yields rebounding. Bond prices and yields move inversely to one another, and mortgage rates are closely related to yields on long-term government bonds. However, fixed mortgage rates are still very attractive, remaining below the 6 percent threshold.

Low mortgage rates mean low monthly mortgage payments. Four months ago, before the Fed began raising short-term interest rates, the average 30-year fixed mortgage rate was 6.36 percent. At the time, the monthly payment on a $165,000 loan was $1,027.77. With the average rate now 5.84 percent, the monthly payment on the same $165,000 loan is $972.35. The difference in monthly payments of $55.42 amounts to nearly $20,000 over the loan term.

SURVEY RESULTS

30-year fixed: 5.84% -- up from 5.75% last week (avg. points: 0.35)
15-year fixed: 5.24% -- up from 5.14% last week (avg. points: 0.33)
1-year ARM: 4.13% -- down from 4.21% last week (avg. points: 0.24)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. Most respondents think rates are headed higher, with 60 percent expecting rates to rise and only 10 percent predicting rates to fall. The remaining 30 percent of respondents don't see rates changing in the coming weeks.

For a full analysis of this week's move in mortgage rates, go to
http://www.bankrate.com/mortgagerates

For the full mortgage Rate Trend Index, go to
http://www.bankrate.com/RTI

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