Mortgage rates hit six week high
The 30-year fixed rate jumped to 5.70%, and more volatility is expected as Senate debates the economic stimulus package.
NEW YORK (CNNMoney.com) -- Mortgage rates rose over the past week, pushing the cost of borrowing to its highest level since Christmas. And volatility is expected to continue as the debate over the economic stimulus plan continues.
The average 30-year fixed mortgage rate rose to 5.70% from 5.48% for the week ended Feb. 4, according to Bankrate.com.
The average 15-year fixed rate mortgage increased to 5.31% from 5.10%, and the average jumbo 30-year fixed rate jumped to 7.12% from 7.06%.
Adjustable rate mortgages were mixed over the past week, with the average 1-year ARM falling to 5.73% from 5.87% and the 5/1 ARM increasing to 5.5% from 5.41%.
The increase in mortgage rates makes borrowing more expensive for many would-be home buyers.
Last week, when the average 30-year fixed mortgage rate was 5.48%, a $200,000 loan would have carried a monthly payment of $1,133.07, according to Bankrate.com.
With the average rate now 5.70%, the monthly payment for the same size loan would be $1,160.80, a difference of nearly $28 per month.
Mortgage rates have been climbing since the Federal Reserve released its most recent post-meeting statement on Jan. 28, which was noncommittal about the possibility of buying long-term Treasury securities in an effort to reduce mortgage rates.
But offsetting that move is the government's massive stimulus plan, which is being paid for via Treasury auctions.
One stimulus idea that's being pushed by Senate Republicans would create a 30-year fixed rate mortgage at 4% for a limited period of time.