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Mortgage Rates Rise As Bank Stocks Soar to 2008 Levels

By Alex Dumortier, CFA – Updated Nov 10, 2016 at 8:10PM

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Mortgage rates rose on Thursday; meanwhile, the prospect of a Trump presidency lifted bank shares back to levels not seen since the first half of 2008.

Image source: Pixabay.

Mortgage rates rose on Thursday. The average 30-year mortgage rate is 3.62%, which equates to a $455.77 monthly payment per $100,000 borrowed. A month ago, the equivalent payment would have been lower by $10.62.

If you were to opt for a shorter term, the average 15-year mortgage rate is 2.82%, which equates to a $681.96 monthly payment per $100,000 borrowed. A month ago, the equivalent payment would have been lower by $6.66.

Rate (National Average)


1 Month

30-year fixed jumbo




30-year fixed




15-year fixed




30-year fixed refi




15-year fixed refi




5/1 ARM




5/1 ARM refi




Data source: Bloomberg.

Mortgage delinquency rates at new lows; bank shares at new highs

On Tuesday, I reported that third-quarter mortgage delinquency rates had fallen to their lowest level of the post-crisis era (since the third quarter of 2009, to be strictly accurate). That observation was courtesy of consumer credit scoring agency TransUnion, and it appears to be confirmed by data published today by the Mortgage Bankers Association (MBA). In fact, according to the MBA, the mortgage delinquency rate (all loan types, one- to four-unit residential properties) in the third quarter, at 4.52%, was the lowest since 2006. TransUnion only began recording its data series with the third quarter of 2009.

Meanwhile, bank shares had a fantastic day on Thursday, with the S&P 500 Financials Sector Index gaining 3.7% to reach its highest level since the first half of 2008. The S&P 500's fourth-biggest gainer, with a 7.6% increase, was Wells Fargo & Co., which has been rocked by a phony-account scandal. The market may be betting that a Trump administration will repeal the Dodd-Frank Act, which imposed onerous regulations on banks in the wake of the financial crisis.

Alex Dumortier, CFA has no position in any stocks mentioned. The Motley Fool owns shares of Wells Fargo. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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