Bankrate: Mortgage Rates Dip as Consumer Confidence Sours.

NEW YORK, March 31 /PRNewswire-FirstCall/ -- Mortgage rates took a break from the steady rise seen in the past six weeks. The average 30-year fixed rate mortgage dipped slightly to 6.13 percent from 6.15 percent, 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 0.31 discount and origination points.

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The 15-year fixed rate mortgage, popular for refinancing, was unchanged at 5.67 percent. Meanwhile, the average rate for the jumbo 30-year fixed rate mortgage retreated from 6.35 percent to 6.32 percent. Adjustable rate mortgages moved higher, with the average 5/1 adjustable rate mortgage rising from 5.58 percent to 5.61 percent and the one-year ARM soaring to 4.72 percent.

After climbing more than half of one percentage point in the past six weeks, fixed mortgage rates fell slightly this week. A decline in consumer confidence for March was attributed to worries about rising gasoline prices and a pessimistic job outlook, raising concerns about the strength of consumer spending in coming months. Despite forecasts of additional interest rate hikes, investors sought government and mortgage-backed bonds. As demand for bonds fluctuates, so do both bond yields and mortgage rates. Mortgage rates are closely related to yields on long-term government bonds.

Mortgage rates and monthly payments are considerably higher than one year ago. At the time, the average 30-year fixed mortgage rate was 5.6 percent. At the time, the monthly payment on a $165,000 loan was $947.23. With the average rate now 6.13 percent, the monthly payment on the same $165,000 loan is $1,003.09. The $55.86 difference in monthly payments amounts to more than $20,000 over the loan term.

 
                              SURVEY RESULTS 
 
  30-year fixed: 6.13% -- down from 6.15% last week (avg. points: 0.31) 
15-year fixed: 5.67% -- unchanged from 5.67% last week (avg. points: 0.36) 
      5/1 ARM: 5.61% -- up from 5.58% last week (avg. points: 0.25) 
 
 

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.