Mortgage rates move higher Bankrate survey finds

NORTH PALM BEACH — Fixed mortgage rates reversed the decline seen last week, with the average conforming 30-year fixed mortgage rate rising to 6.20 percent, according to Bankrate.com's weekly national survey of large lenders.

The average 15-year fixed rate mortgage increased to 5.80 percent, while the average jumbo 30-year fixed rate climbed to 7.38 percent.

Adjustable mortgage rates were no exception, with the average 1-year ARM moving up to 6.22 percent and the average 5/1 ARM jumping to 5.86 percent.

Inflation worries were the catalyst for the rise in mortgage rates this week. In recent weeks, building inflation pressures and concerns about economic growth have been playing tug-of-war with mortgage rates.

In weeks when inflation trumps economic weakness, like this week, mortgage rates increase. When the focus shifts to the housing market, jobs, or anemic economic growth, mortgage rates fall.

Rising oil prices have played a dual role by fueling higher inflation on both the headline and core levels while representing a drag on economic growth. Fixed mortgage rates are closely related to yields on long-term government bonds, and the outlook for the economy and inflation heavily influence both.

Since the beginning of the year, the average 30-year fixed mortgage rate has been 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 6.20 percent, a $200,000 loan would mean a monthly payment of $1,224.94.

Survey results:

— 30-year fixed: 6.20 percent, up from 6.02 percent last week (avg. points: 0.47).

— 15-year fixed: 5.80 percent, up from 5.63 percent last week (avg. points: 0.48).

— 5/1 ARM: 5.86 percent, up from 5.71 percent last week (avg. points: 0.42)

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.

Meanwhile, the Rate Trend Index indicates rates are going to move higher in the next 30 to 45 days. A strong majority of index panelists, 69 percent, expects rates to keep moving higher. Just 25 percent forecast a decline in rates and the remaining 6 percent predict rates will remain more or less unchanged.