Mortgage rates nudge upward, Bankrate finds

NORTH PALM BEACH — Fixed mortgage rates moved higher for the second week in a row, with the average conforming 30-year fixed mortgage rate hitting to 6.26 percent, according to Bankrate.com's weekly national survey of large lenders.

The average 15-year fixed rate mortgage increased to 5.84 percent, while the average jumbo 30-year fixed rate climbed to 7.47 percent. Adjustable mortgage rates fell, with the average 1-year ARM sliding to 6.14 percent and the average 5/1 ARM falling to 5.8 percent.

Federal Reserve Chairman Ben Bernanke, in his first economic remarks in two months, hinted that no more interest rate cuts were in the pipeline. This validated the widely held belief that the Fed has moved to the sidelines.

All eyes have now shifted to inflation, with Bernanke and other Fed officials increasingly focusing their comments in that direction. In recent weeks, building inflation pressures and concerns about economic growth have been playing tug-of-war with mortgage rates, and this continues to be the case.

Fixed mortgage rates are closely related to yields on long-term government bonds, and both are heavily influenced by the outlook for the economy and inflation.

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 6.26 percent, a $200,000 loan would mean a monthly payment of $1,232.74.

Survey results:

 — 30-year fixed: 6.26 percent, up from 6.2 percent last week (avg. points: 0.40).

— 15-year fixed: 5.84 percent,  up from 5.8 percent last week (avg. points: 0.40).

— 5/1 ARM: 5.80 percent,  down from 5.86 percent last week (avg. points: 0.38).

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.

Bankrate's Rate Trend Index sees rates likely to continue to rise over the next 30 to 45 days. Nearly half of the index panelists, 46 percent, expect rates to keep moving higher. The remainder are evenly split, with 27 percent forecasting a decline and the 27 percent predicting rates will remain more or less unchanged.