Record breaking low current mortgage rates are finally helping the housing market recover. Existing home sales were better than expected and home prices actually increased in April. Fixed mortgage rates have made three week’s of consecutive all-time lows. 30 year mortgage rates are averaging 3.82 percent and 15 year mortgage rates are averaging 3.11 percent.

The National Association of Realtor’s April Existing-home sales index was up 3.4 percent to a seasonally adjusted annual rate of 4.62 million. This number is based on completed transactions that include single-family homes, town homes, condominiums and co-ops.

Home prices are finally recovering from the housing bust. The national median existing-home price for all housing types jumped 10.1 percent to $177,400 in April from a year ago.

A 10 percent jump in home prices is reminiscent of the housing boom. Unfortunately the 10 percent number is skewed by a decrease in the number of foreclosed properties sold.

Lawrence Yun, NAR chief economist, said “A diminishing share of foreclosed property sales is helping home values. Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions”.

Lawrence Yun also had the following comments about the housing market.  “It is no longer just the investors who are taking advantage of high affordability conditions.  A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices,” he said.  “The general downtrend in both listed and shadow inventory has shifted from a buyers’ market to one that is much more balanced, but in some areas it has become a seller’s market.”

You can also view this video on the housing numbers.

Record low fixed conforming  mortgage rates held steady in this week’s Primary Mortgage Market Survey released by Freddie Mac this morning. Bond yields haven’t moved much the past week which is why mortgage rates barely changed.

Current mortgage rates today on 30 year conforming home loans are at a new all-time low averaging 3.78 percent with 0.8 mortgage discount points for the week ending today, down from the previous week’s average 30 year mortgage rate of 3.79 percent.

Last year 30 year mortgage interest rates were averaging 4.60 percent. If you have refinanced your mortgage in the past year you should look into refinancing again since 30 year refinance rates are 80  basis points lower. You might also want to think about refinancing to a short term mortgage like a 15 year loan since 15 year refinance rates can be found as low as 2.75 percent.

15 year mortgage rates remain at a record low set last week. Current fixed conforming 15 year mortgage rates are at 3.04 percent with 0.7 mortgage points, unchanged from last week’s average. This rate is an average rate you can find rates lower than the averages.

Adjustable mortgage rates were mixed in this week’s mortgage survey. 5 year adjustable mortgage rates today are averaging 2.83 percent with 0.6 points, unchanged from last week’s average rate.

Today’s 1 year adjustable mortgage rates are averaging 2.75 percent with 0.4 mortgage points, down from last week’s average adjustable rate of 2.78 percent.

Homeowners that are not underwater on their mortgages and have enough equity to refinance their loan are doing so thanks to record low mortgage rates today. In the Weekly Application Survey released by the Mortgage Bankers Association, refinance applications are up 5.6 percent from the prior week.

With current fixed conforming 30 year mortgage rates averaging 3.83 percent and 15 year rates averaging 3.12 percent it’s no surprise homeowners are taking advantage of low rates. Fixed mortgage rates have made record lows the past three weeks and refinance applications have increased each of the past three weeks.

Unfortunately today’s low mortgage rates aren’t bringing home buyers into the market as the MBA’s purchase index showed a decrease of 3.0 percent from the previous week.

Average 30 year conforming mortgage rates (loans up to $417,000) in the Weekly Application Survey decreased to 3.93 percent for the week ending May 18, 2012, down from last week’s average of 3.96 percent. This week’s average 30 year conforming rate is the lowest point in history in the survey.

30 year FHA mortgage rates (mortgages backed by the FHA) decreased to 3.73%, down from the previous week’s average of 3.75%. This is the lowest average FHA mortgage rate in history in the MBA’s application survey.

Jumbo mortgage rates (loans over $417,000) increased to 4.25 percent, up from the previous week’s average rate of 4.20 percent. Back during the financial crisis when it was next to impossible to get a jumbo mortgage the spread between conforming mortgage rates and jumbo mortgage rates was 1.5 percent to 2 percent. Now the spread is only 0.32 percent or 32 basis points.

The average rate for 15 year conforming loans remained unchanged this week at 3.26 percent which is still an all-time record low rate. If you’re thinking about refinancing you should really consider a 15 year loan. You’ll save a ton of money in mortgage interest payments over the life of a loan with a 15 year loan instead of a 30 year loan. You can use a mortgage calculator to figure out the savings.

5 year adjustable mortgage rates were higher in this week’s survey. The current average 5 year adjustable mortgage rate is at 2.83 percent, up from the prior week’s average 5 year rate of 2.80%.

I personally wouldn’t get a 5 year loan these days with fixed rates being so low. If you’re not planning on staying in a home more than a few years I wouldn’t even buy a home since home prices probably won’t be increasing over the next few years. Even if prices do increase don’t expect much of a gain to offset the cost of buying and selling a home.

Recent record low mortgage rates probably helped drive existing home sales higher in April. Existing Home Sales, scheduled to be released by The National Association of Realtors (NAR) at 10:00 AM this morning, probably increased 2.9 percent to a 4.61 million annual rate last month, according to the median forecast of 73 economists surveyed by Bloomberg News. Current 30 year mortgage rates today are averaging 3.79 percent, a record low, fueling both home purchases and mortgage refinances.

Homes have been and continue to be more affordable then they have been in a generation. A sharp decline in home prices since the housing bubble popped and record low mortgage rates are the driving factors behind affordability.

The NAR’s composite quarterly Housing Affordability Index rose to a record high of 205.9 in first quarter of 2012. The index is based on the relationship between median home price, median family income and average mortgage interest rates.

Homes are more affordable has the index rises. The NAR has kept records on housing affordability since 19070 and the 205.9 is the first time the quarterly index broke the 200 mark.

If existing homes sales come in stronger then expected that could drive current mortgage rates higher. Investors will take stronger home sales as an indicator that the economy is actually stronger than people believe. This will drive bond yields higher and as a result mortgage rates will also move higher.

Even if mortgage interest rates move higher I don’t expect rates to increase by much. 30 year rates will stay under 4.00% for several more months and 15 year rates might possibly break under 3.00%.

Already low fixed mortgage rates have made yet another low today. Both 30 year and 15 year fixed mortgage interest rates hit another low in this week’s Primary Mortgage Market Survey released be Freddie Mac. Mortgage rates are lower thanks to lower Treasury yields on concern about Greece’s debt and the European Union.

The current average fixed 30 year mortgage rate fell to 3.79% with 0.7 mortgage points for the week ending May 17, 2012, down from the previous week’s average 30 year mortgage rate of 3.83%. 15 year rates are averaging 3.04% with 0.7 mortgage points, down from last week’s average of 3.05%.

Slight better U.S economic data including the highest consumer sentiment, higher industrial production and more housing starts were overshadowed by Greece failing to form a new government and concern about the debt deal reach between Greece and the European Union.

Average adjustable mortgage rates were slightly higher this week over last. 5 year adjustable mortgage rates are averaging 2.83% with 0.6 mortgage points, up from last week’s average of 2.81%. 1 year adjustable mortgage interest rates are averaging 2.78% with 0.5 mortgage points, up from the prior week’s average of 2.73%.

Low refinance rates are fueling demand for mortgages. The Mortgage Bankers Association said mortgage applications for refinancing increased 13 percent from the previous week. 

Homeowners applying for mortgages to refinance a loan account for the majority of applications these days which isn’t a surprise since rates are at record lows and home sales are still lower now then they were a few years ago.

The mortgage refinance share of applications increased to 74.9 percent of total applications, up from 72.1 percent the previous week. Refinance rates on 30 year mortgages can be found as low as 3.50% and 15 year rates as low as 2.75% with points; no wonder homeowners are taking advantage of these low rates.

Unfortunately many homeowners can’t refinance. There is an estimated 11.1 million homeowners who are underwater on their mortgage according to CoreLogic, or 22 percent of all mortgaged properties. They owe more than their home is worth shutting them out of being able to refinance.

Democats are going to introduce legislation to help these homeowners the President annouced recenlty. You can read more here: More Changes to Make Refinacing Easier.