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Mortgage rates rose for the first time this year as the Dow set a milestone by nudging above 20,000.
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Rates on mortgages had declined three weeks in a row. But the streak was snapped as investors went on a shopping spree for stocks. Bond prices sank, and that sent bond yields and mortgage rates soaring.
"The Dow crossed over the 20,000 mark. So that's kind of a psychological thing," says Elizabeth Rose, branch manager for Movement Mortgage, in Dallas. "I think what we're seeing is kind of a continuation of the (Donald) Trump rally. … It's mostly a continuation of excitement and confidence of the business community and where business is headed."
She doesn't intend that as a political statement. Rather, it's an explanation for the bullish attitude among business leaders.
"Whether it's controversial or not, if it's deemed positive for the business community," she says, we could see lower bond prices along with higher mortgage rates and stock prices.
Use Bankrate's mortgage calculator to see how much sooner you could pay off the loan by making extra payments.
Mortgage rates this week
The benchmark 30-year fixed-rate mortgage rose this week to 4.32 percent from 4.18 percent, according to Bankrate's weekly survey of large lenders. A year ago, it was 3.94 percent. Four weeks ago, the rate was also 4.32 percent. It hasn't been higher than that since mid-September 2014, when it hit 4.33 percent and then fell.
The mortgages in this week's survey had an average total of 0.28 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 3.81 percent. This week's rate is 0.41 percentage points higher than the 52-week average.
- The benchmark 15-year fixed-rate mortgage rose to 3.51 percent from 3.41 percent.
- The benchmark 5/1 adjustable-rate mortgage rose to 3.51 percent from 3.45 percent.
- The benchmark 30-year fixed-rate jumbo mortgage rose to 4.31 percent from 4.24 percent.
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Weekly national mortgage survey
|This week's rate:||4.32%||3.51%||3.51%|
|Change from last week:||+0.14||+0.10||+0.06|
|Change from last week:||+$13.53||+$8.09||+$5.52|