Long-term USA mortgage rates rose this week, marking new highs for the year.
The benchmark 30 year fixed rate mortgage interest rates at Suntrust Banks (NYSE:STI) are 4.400% today carrying an April of 4.4870%.
What does the gradual increase in rates mean to your wallet? 7 year ARMs have been quoted at 4.000% today and an April of 4.035%.
Shorter term 15 year fixed rate mortgage interest rates start at 3.625% and April of 3.686%. But they fell at the start of the year and then moved little in recent weeks.
An even better-than-expected jobs report out today means that the Federal Reserve is nearly certain to raise short-term rates this month, meaning that consumers will continue to see rising mortgage rates and higher borrowing costs overall. But home loan rates often move higher immediately after a rate hike.
Fed Chair Janet Yellen has signaled that the central bank likely will decide at its policymakers' meeting next week to resume raising its key interest rate, reflecting a strengthening job market and inflation edging toward the Fed's 2 percent target.
Freddie Mac Chief Economist Sean Becketti attributed the increase directly to the jump in the 10-year Treasury bond yield, which increased by one-tenth of a point in one week. It rose further to 2.58 percent Thursday morning. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. That's nearly $100 a month more than last July, when the average rate was 3.4 percent.
The short term, popular 15 year loans at the bank start at 3.625% and an April of 3.7861% today.
10 year loans are available starting at 3.250% and April of 3.456% today. The fee held at 0.4 point.