Mortgage rates barely change

NORTH PALM BEACH — Fixed mortgage rates were largely unchanged this week, with the average conforming 30-year fixed mortgage rate slipping slightly to 6.13 percent, according to Bankrate.com's weekly national survey of large lenders.

The average 15-year fixed rate mortgage was unchanged at 5.71 percent, while the average jumbo 30-year fixed rate remains 7.35 percent. Adjustable mortgage rates retreated, with the average 5/1 ARM falling to 5.87 percent and the average 7/1 ARM falling to 6.09 percent.

Even though adjustable mortgage rates pulled back this week while fixed rates held steady, the value remains in fixed rate mortgages.

The difference between the 30-year fixed and the 7/1 ARM is negligible especially considering the 30-year fixed rate offers the guarantee that the rate will never change.

Borrowers should look for a more substantive difference in the two rates, and even then, the adjustable rate mortgage is best suited for home buyers who don't plan to be in the home when the interest rate resets. Adjustable rate mortgages should not be used as a shortcut to affordability.

Mortgage rates have been on a wild ride since the beginning of the year. The average 30-year fixed mortgage rate was as low as 5.57 percent in January, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38.

In February, the average 30-year fixed rate got as high as 6.41 percent, which meant the same $200,000 loan would have carried a monthly payment of $1,252.32. Today, with the average rate at 6.13 percent, a $200,000 loan would mean a monthly payment of $1,215.87.

Survey results:

— 30-year fixed: 6.13 percent,  down from 6.16 percent last week (avg. points: 0.40).
— 15-year fixed: 5.71 percent, unchanged from last week (avg. points: 0.37).

— 5/1 ARM: 5.87 percent,  down from 5.96 percent last week (avg. points: 0.33).

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.

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

Bankrate's weekly forward-looking Rate Trend Index sees rates heading higher over the next 30 to 45 days. Nearly two-thirds of the index’s panelists believes rates are headed higher while 21 percent forecast that rates will remain more or less unchanged. Just 16 percent predict rates will move lower in the coming 30 to 45 days.