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Mortgage rates for Aug. 2, 2012

 

I'm Greg McBride with Bankrate.com and here is your weekly look at mortgage rates.

Mortgage rates posted mixed results this week. The average rate on the benchmark 30-year fixed mortgage broke a 4-week streak of declines, ticking higher to 3.77 percent. The larger jumbo 30-year fixed mortgage inched up to 4.39 percent.

Comments from the President of the European Central Bank helped reverse some of the recent flight to quality that had brought bond yields and mortgage rates consistently lower. Mortgage rates are closely related to the yields on government bonds. When investors are nervous and piling into safe haven investments, it serves as a catalyst for lower rates. But the reverse is also true, and when any of those trades gets unwound, it pushes rates higher.

But not all rates were higher this week. The 15-year fixed rate mortgage slid to a new low of 2.99 percent, while the 3-year, 7-year, and 10-year adjustable mortgages were each down slightly, hitting new lows.

We've been spoiled by years of ultra-low mortgage rates. The last time 30-year mortgage rates were above 6 percent was Nov. 2008. But it's still important to shop around for the best mortgage deal. To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com.

I'm Greg McBride.

 

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Mortgage Overnight Averages
Product Rate +/- Last week
30 yr fixed mtg
3.65% 3.65%
15 yr fixed mtg
2.80% 2.78%
5/1 ARM
2.59% 2.60%
30 yr fixed mtg refi
3.64% 3.63%
View rates in your area:
 

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