Mortgage Rates

Conforming mortgage rates are slightly higher this week after several weeks of average rates moving lower. Last week, 15 year conforming mortgage rates hit a new all-time record low of 2.56 percent. Average mortgage rates moved higher this week on higher bond yields because of a better than expected employment report that was released last Friday.

Today’s mortgage rates on 15 year conventional home loans are averaging 2.71 percent, an increase from the prior week’s average rate of 2.64 percent. Current quotes from lenders on our 15 year rate table are much lower than the average rate of 2.71 percent. The lowest 15 year rates currently available are as low as 2.25 percent with points. The lowest rates without points are in the 2.50 percent range, still below the average rate this week.

Low mortgage rates and a healthy housing market are helping the government-sponsored enterprises  (GSEs), Freddie Mac and Fannie Mae, repay the United States Treasury billions of dollars they received during the housing collapse. Freddie Mac just reported a record profit of 4.6 billion for the first quarter of 2013. In total both Freddie Mac and Fannie Mae received $170 billion from the U.S. Treasury. So far the GSE’s repaid $62 billion back to the Treasury.

Low current mortgage rates and a low number of existing homes for sale have continued to send the median home price higher in the first three months of 2013. The National Association of Realtors reported the median existing single-family home price rose in 133 out of 150 metropolitan statistical areas.

The NAR also reported the national median existing single-family home price was $176,600 in the first quarter, up 11.3 percent from $158,600 in the first quarter of 2012. This is the largest year over year gain since the height of the housing bubble when the average 13.6 percent in the fourth quarter of 2005.

The national average 30 year mortgage rate is averaging 3.52 percent this week, up 10 basis points from last week’s average 30 year rate. Although the average 30 year rate is up sharply this week, rates are only 0.25 basis points from the all-time record low of 3.27 percent set late in 2012.

There are lenders that are quoting mortgage rates with points and without points well below the current average of 3.52 percent. If you have a good credit score of 660 or higher, you can easily find lenders quoting rates as low as 3.00 percent with 1.5 to 2 mortgage points. The same credit score will get you rates quoted as low as 3.25 percent without mortgage points.

Today’s mortgage rates on 30 year jumbo mortgage loans are averaging 3.91 percent, an increase from last week’s record low average rate of 3.87 percent. The lowest 30 year jumbo refinance rates today on our rate tables are around 3.375 percent without points. The lowest 30 year jumbo refi rates without points are also below the average at 3.375 percent.

Millions of people who bought a home during the height of the housing bubble were unable to refinance their mortgage even though refinance rates declined the past 5 years and hit record lows late in 2012. Unfortunately, home prices also declined – in some area as much as 50 percent.  This put refinancing out of reach for many homeowners due to their diminished loan-to-value (LTV) ratios.

Most lenders will only lend up to 80 percent of a home’s value. People who bought during the housing price bubble didn’t have enough equity in their home or were underwater on their loan, making a refinance impossible. If you’re one of these homeowners, you should look into refinancing again since home prices increased in 2012 and are forecasted to increase the next two years.

Another reason to refinance now is 15 year conforming refinance rates today made a new record low last week and 30 year conforming rates are just above record lows. The current national average 15 year refinance rate is at 2.67 percent but you can find many lenders quoting rates even lower for those who have a good FICO score.

If you live in the state of New Jersey and are looking for quotes, you can find lenders in our rate list quoting 15 year refinancing rates as low as 2.25 percent with points. The lowest 15 year refi rates on our list for NJ without points are at 2.375, still 30 basis points below the national average rate. These rates are quoted on a conforming refinance loan with 20 percent equity and a FICO score of at least 680.

Across the country in California, we also have banks and lenders quoting 15 year rates well below the average. The lowest 15 year refinance rate right now on our CA rate list are at 2.25 percent with 1 mortgage point. The lowest 15 year California refinance rate without points on our list are at 2.375 percent.

There are many benefits to refinancing from a 30 year loan to a 15 year loan, the main benefit is saving tens of thousands or even hundreds of thousands of dollars in mortgage interest payments. The other main benefit is owning your home outright in 15 years instead of 30 years. The only drawback of a 15 year loan vs. a 30 year loan is higher monthly mortgage payments. This is the main reason why most homeowners choose a 30 year loan instead of a 15 year loan.

If you’re refinancing to a 30 year mortgage loan, the national average 30 year rate this week is at 3.43 percent. 30 year rates are just above an all-time record low of 3.27 percent but right now you can find lenders quoting rates below the record low. If you live in the state of Florida, right now we have lenders quoting 30 year conforming refi rates as low as 3.00 percent with points. The lowest FL refi rates without points on 30 year loans right now are at 3.24 percent.

Conforming 15 year mortgage rates just hit a new all-time record low of 2.61 percent in Freddie Mac’s mortgage survey, breaking through the old record low of 2.63 percent set in November 2012. This is the fourth consecutive week fixed conforming mortgage rates are lower and probably will continue to decline in the coming weeks, thanks to lower U.S. Treasury yields.

Low mortgage rates today is the main factor in helping the housing market recover from the worst housing bust since the Great Depression. Another analyst just make a bold prediction on housing prices for this year and next. Barclays analyst Stephen Kim, in a Wall Street Journal article is predicting housing prices will climb 13 percent in 2013 and another 8 percent in 2014.

Two more years of double or almost double digit increases in housing prices is remarkable, considering that prices have already gained double digits increases in 2012. The National Association of Realtors reported the national median existing-home price was up 12.3 percent between January 2011 and January 2012.

Average 30 year mortgage rates are down to 3.40 percent with 0.8 mortgage points in Freddie Mac’s Primary Mortgage Market Survey this week. 30 year rates are down slightly from the prior week’s average of 3.41 percent. The all-time record low for 30 year conventional mortgage rates in Freddie Mac’s survey is 3.27 percent, set back in November 2012.

Current mortgage rates on 30 year conventional loans can be found below the averages mentioned above. Today’s mortgage rates can be found as low as 3.00 percent with points on our rate tables. The lowest 30 year rates without points are also below the average at 3.25 percent. You can find rates lower than the averages in most (if not all) states listed in our database.

There are mortgage lenders also quoting 15 year refinance rates today that are much lower than the record low average rate of 2.61 percent. We have lenders quoting current mortgage refinance rates as low as 2.25 percent with points. The lowest 15 year rates without points are also quoted below the average at 2.50 percent.

5 year adjustable mortgage rates averaged 2.58 percent with 0.5 mortgage points, down from the previous week’s average rate of 2.60 percent. Depending on the state you search for rates, the lowest 5 year adjustable refinance rates in our database are at an incredibly low rate of 1.50 percent with points. We also have lenders quoting 5 year adjustable refi rates without points at 2.00 percent, still below the average rate of 2.58 percent.

Average mortgage rates moved lower again this week and are now just above record lows set in November of last year. The catalysts sending mortgage rates lower this week were a weaker than expected retail sales report and a lower reading on consumer sentiment. As a result of the week economic data released, bond yields moved lower which in turn is sending mortgage rates lower.

Mortgage rates today on 30 year conforming mortgage loans are averaging 3.52 percent, a decline from last week’s average 30 year mortgage rate of 3.57 percent. Late last month, average 30 year mortgage interest rates were almost 20 basis points higher at 3.70 percent. This coming week we could see average 30 year rates fall below 3.50 percent.

Right now the best mortgage refinance rates available for 30 year loans are available in our database as low as 3.00 percent with points. The lowest refinance rates without points are still below the average rate at 3.25 percent. In Freddie Mac’s rate survey this week, average 30 year conforming rates fell to 3.41 percent with 0.7 points, down from the prior week’s average rate of 3.43 percent.  The all-time record low for average 30 year rates in Freddie Mac’s survey are at 3.27 percent.

15 year conventional mortgage rates also fell this week, courtesy of weak consumer spending and sentiment. Average 15 year conforming rates are at 3.75 percent this week, a decline from the previous week’s average 15 year rate of 3.80 percent. This coming week, average 15 year rates could fall below 3.70 percent but currently many lenders are already quoting 15 year refinancing rates below 3.70 percent.

Depending on the state you search for, you can find rates in our database with lenders quoting 15 year refi rates this week at 2.25 percent with 1 mortgage point. The lowest 15 year conventional refi rates without points in our database right now can be found as low as 2.375 percent - still well below the average rate.

Today’s mortgage rates on 30 year jumbo mortgage loans are averaging 3.93 percent, down from the prior week’s average 30 year jumbo mortgage rate of 3.97 percent.  If bond yields continue to decline, next week’s average 30 year jumbo mortgage rates may fall below 3.85 percent. The best jumbo mortgage rates in our database are currently at 3.375 percent with no points.

Average 15 year jumbo refinance mortgage rates are at 3.33 percent, a decline from last week’s average 15 year jumbo mortgage rate of 3.37 percent. The lowest 15 year jumbo refinance rates in our database are at 2.625 percent with 2 mortgage points and the lowest 15 year jumbo rates without points are at 2.875 percent.

Shorter term adjustable mortgage rates for both conforming and jumbo loans also moved lower this week. The average 5 year conforming adjustable mortgage rate is at 2.64 percent, down from last week’s average rate of 2.66 percent. 5 year jumbo adjustable rates this week are averaging 2.89 percent, down from last week’s average of 2.91 percent.

The lowest 5 year conventional adjustable refinance rates in our database right now are at 1.50 percent with 2 mortgage points and at 2.00 percent with zero points. The lowest 5 year jumbo adjustable refinance rates in our database today are at 2.00 percent with 2 mortgage points and at 2.125 percent with no points.

Average mortgage rates declined as equity prices and commodity prices tumbled yesterday on fears of slower growth. 30 year conventional mortgage rates today are averaging 3.51 percent, a decline from last week’s average 30 year mortgage rate of 3.56 percent. Equity and commodity prices dropped considerably yesterday on fears of slowing economies in the United States and China.

Gold, the most active futures contract, fell for June delivery by losing more than $140 an ounce yesterday, adding to the declines of last week. Surprisingly, bond yields only slipped 2 basis points yesterday but will continue to fall in the coming days if stock prices and commodity prices end further.

The current average 30 year mortgage interest rate is just above a record low of 3.27 percent, set late in 2012. This week we could see average 30 year mortgage rates fall below 3.51 percent and possibly as low as 3.40 percent. If you’re searching and comparing mortgage rates, we have lenders in our database offering 30 year conforming rates below the record low of 3.27 percent. The lowest 30 year refinance rates in our database can be found as low as 3.00 percent with points in some states. The best refinance rates without points in our database can be found as low as 3.25 percent.

15 year conforming mortgage rates are averaging 2.77 percent this week, down slightly from last week’s average 15 year mortgage rate of 2.78 percent. This week, average 15 year conforming rates might fall below 2.75 percent and possibly as low as 2.70 percent if bond yields drop. We have lenders quoting 15 year refinance rates today in our database as low as 2.25 percent with points and as low as 2.50 percent with no points.

Today’s mortgage rates on 30 year jumbo mortgage loans are averaging 3.95 percent, which is slightly higher than last week’s average 30 year jumbo mortgage rate of 3.94 percent. The lowest 30 year jumbo refinance rates today in our database are below the average rates at 3.375 percent with points. The lowest jumbo refinancing rates without points on 30 year jumbo loans are slightly higher at 3.50 percent.

Current mortgage rates on 15 year jumbo mortgage loans are averaging 3.34 percent this week, down from the previous week’s average 15 year jumbo rate of 3.47 percent. In our database we have lenders quoting 15 year jumbo refinancing rates as low as 2.625 percent with 2 mortgage points and the lowest 15 year refi rates without points are quoted at 3.125 percent.

The lowest 5 year conforming adjustable refinance rates in our database are much lower than the average rate. 5 year conforming mortgage rates today are averaging 2.66 percent, a slight increase from last week’s average 5 year conforming adjustable rate of 2.65 percent. The lowest quoted rates offered by lenders are at 1.50 percent with 1.80 mortgage points. The lowest 5 year adjustable refi rates without points are being offering at 2.00 percent.

Current actions by The Bank of Japan (BOJ) will help force mortgage rates in the United States lower. The BOJ has started down an unprecedented path of stimulus by announcing their plan to purchase more than ¥100 trillion of Japanese government debt over the next two years. As a result of the BOJ’s actions, investors are retreating from the Japanese bond market and looking for higher yields elsewhere in Europe and the United States.

Investors have been purchasing long term U.S. Treasuries which is sending yields lower. When bond prices rise because of investor demand, bond yields move lower. Since the BOJ announced their plans last week, 10 year Treasury yields have fallen from 1.85 percent down to 1.70 percent and have since bounced back to 1.75 percent today. Over the past week both conforming and jumbo mortgage rates have also fallen.

Mortgage rates today on 30 year conforming loans are averaging 3.56 percent, a decline from last week’s average 30 year mortgage rate of 3.65 percent. The recent high for average 30 year rates was 3.86 percent just a few weeks ago. Overall, average rates are expected to stay within current levels and will remain under 4.00 percent for the entire year. The forecast is for higher average 30 year mortgage rates in the coming year but rates will also remain under 4.50 percent for all of 2014.

Average 30 year jumbo mortgage rates this week are averaging 3.96 percent, down from last week’s average 30 year jumbo mortgage rate of 4.12 percent. Another factor that sent average mortgage interest rates lower this past week was a disappointing unemployment report which showed 88,000 jobs were created in March, lower than the expected number of 200,000.

15 year conventional mortgage rates are also lower this week, averaging 2.78 percent, down from last week’s average 15 year rate of 2.91 percent. For the 2013 year, average 15 year rates are expected to remain under 3.10 percent. Average 15 year jumbo mortgage rates today are at 3.34 percent, a decline from last week’s average 15 year jumbo rate of 3.51 percent. For 2013, 15 year jumbo rates are expected to remain under 3.75 percent.

If you’re thinking about refinancing a 30 year mortgage, you should give serious consideration to a 15 year loan. Depending on your loan amount, you can save tens of thousands or even hundreds of thousands of dollars in mortgage interest by refinancing to a 15 year loan.

Another reason to consider a 15 year loan is that 15 year rates are always lower than 30 year rates. The lowest 15 year conforming refinance rates currently available are around 2.25 percent with points. Compare those rates to the lowest 30 year conforming refinance rates which can be found as low as 3.00 percent you can see the rate benefit of a 15 year loan vs. a 30 year loan.

The same is true for jumbo rates, the lowest 30 year jumbo refinance rates available right now are at 3.50 percent with points. The lowest 15 year jumbo refi rates are at 2.75 percent with points. The only drawback to choosing a 15 year loans instead of a 30 year loans is the monthly mortgage payments will be higher, but if you can afford the higher payments a 15 year loan is the smart choice.

Last Friday, a lackluster employment report for the month of March was released and as a result today’s mortgage rates are lower. In the March Labor Report released by the United States Department of Labor and the Bureau of Labor Statics, non-farm payrolls increased by 88,000 jobs. Most analysts surveyed were expecting a gain of 200,000 jobs.

The number of jobs created were lower than expected but the unemployment rate did fall 0.2 percent, from 7.8 percent down to 7.6 percent. The reason the rate fell was that more people left the work force, either through retiring or just giving up looking for work. The labor force declined by 496,000 in March, and the labor force participation rate decreased by 0.2 percentage point to 63.3 percent.

As a result of a disappointing report, long term Treasury yields declined last week which sent mortgage rates lower this week. 10 year Treasury yields which were over 2.00 percent in early March fell to a low of 1.68 percent after the jobs number was released. Last week, 30 year conforming mortgage interest rates averaged 3.68 percent, which was up from the prior week’s average of 3.62 percent.

30 year conforming mortgage rates today are lower, averaging 3.56 percent and probably will fall below 3.50 percent sometime this week. You can already find lenders quoting 30 year rates below the averages. Right now in our rate database, the lowest 30 year refinance rates can be found as low as 3.00 percent to 3.25 percent points.

Current mortgage rates on 15 year conforming loans are averaging 2.78 percent, a sharp decline from last week’s average 15 year rate of 2.91 percent. The lowest refinance rates today on 15 year conventional loans in our database are much lower at 2.25 percent with points. Without points the lowest 15 year rates are still below the average at 2.50 percent.

30 year jumbo mortgage rates today are once again below 4.00 percent, averaging 3.94 percent. Last week 30 year jumbo rates were higher, averaging 4.09 percent. Currently, in our database the lowest 30 year jumbo refinance rates quoted by lenders are around 3.375 percent with 3.50 percent with points. The lowest 30 year jumbo refi rates without points are at 3.625 percent.

Jumbo mortgage rates on 15 year loans are averaging 3.37 percent, a decline from last week’s average 15 year jumbo rate of 3.53 percent. Right now the lowest 15 year jumbo refinancing rates are at 2.75 percent with points and around 3.00 percent with no points.

5 year conventional adjustable mortgage rates are averaging 2.65 percent, a decline from last week’s average 5 year jumbo adjustable rate of 2.77 percent. This coming week 5 year adjustable rates will fall below 2.60 percent if long term bond yields continue to decline. The lowest 5 year adjustable refinance rates in our database on conventional loans are at 1.50 percent with points and the lowest 5 year adjustable rate without points are at 1.75 percent.

5 year jumbo adjustable rates are averaging 2.95 percent this week, a decline from last week’s average 5 year jumbo adjustable rate of 3.00 percent. The lowest 5 year jumbo refinance rates in our database are much lower at 2.25 percent with points and at 2.50 percent with no points.