Bankrate Inc.‘s national weekly mortgage survey of large lenders has concluded that The Federal Reserve Board’s concerns over a possible recession have prompted the 30-year fixed mortgage rate to jump from 6.19 percent to 6.22 percent this week. Meanwhile, the 15-year fixed rate mortgage dropped from 5.93 percent to 5.92 percent, and the 5/1 adjustable-rate mortgage fell from 6.08 percent to 6.05 percent.

According to Bankrate, fixed-rate mortgages, which are popular refinancing models for borrowers, remain lower than last summer when the Fed raised interest rates.
In its latest report, Bankrate offered a market comparison, which shows a $165,000 home loan with a 30-year fixed-rate mortgage would cost a borrower $1,090.00 per month under last summer’s rates. Under the current interest rate of 6.22 percent, the buyer’s monthly mortgage payments would drop to $1,012.72 per month.
Bankrate’s news of the increasing 30-year fixed-rate mortgage comes on the heels of Federal Reserve Chairman Ben Bernanke’s testimony in front of the Congressional Joint Economic Committee. In his testimony, Bernanke said the weakness in the housing sector has yet to spill over into other sectors of the economy. However, Bernanke did confirm he has several concerns over a possible recession. (Click here to read Bernanke’s full testimony).
For more information on Bankrate’s weekly survey, visit www.bankrate.com/mortgagerates.