Mortgage Rates Increase on Stronger Economic Growth: 30 Year Rates at 4.48%
Mortgage rates are higher this week as the economy gains steam and the unemployment rate falls. Record low mortgage rates we saw earlier this year are a thing of the past. We probably won’t see rates as low again in our lifetime. Mortgage rates today on 30 year conforming loans are averaging 4.48 percent, an increase from last week’s average 30 year mortgage rate of 4.38 percent.
Late last week, two big economic numbers were released that were stronger than expected which sent 10 year bond rates higher. Lenders tie mortgage rates to 10 year bond rates and higher bond rates brings higher mortgage rates. 10 year bond rates increased from 2.77 percent last Wednesday to 2.88 percent this morning. This increase will send average mortgage rates higher this week.
Last Thursday the U.S. Department of Commerce released the second estimate of 3rd quarter Gross Domestic Product (GDP). Real GDP increased at an annual rate of 3.6 percent in the 3rd quarter of 2013, higher than the expected number of 2.8 percent.
Last Friday the Labor Department released November’s job report, which showed 203,000 jobs were created. That number is higher than analysts were expecting. The unemployment rate fell to the lowest point in over 5 years – from 7.3 percent down to 7.00 percent. The rate was expected to be affected by the government shutdown as federal workers returned to work, but the rate was only expected to fall to 7.2 percent. The larger decline points to a stronger economy having created more jobs.
Average 30 year mortgage rates are at 4.48 percent but there are many lenders quoting rates below the average. The lowest 30 year mortgage refinance rates right now in our database of California lenders is at 3.875 percent with 2 mortgage points. The lowest 30 year mortgage refinance rates without points is at 4.25 percent, still below the average rate.
Current mortgage rates on 15 year conforming loans are averaging 3.49 percent, up from last week’s average 15 year mortgage rate of 3.42 percent. The best refinance rates in our database of Texas lenders is way below the average rate at 2.875 percent with 1.442 mortgage points. The lowest 15 year refinancing rates without points is also below the average at 3.25 percent.
Today’s mortgage rates on 30 year jumbo mortgages are averaging 4.55 percent, an increase from the previous week’s average 30 year jumbo rate of 4.44 percent. The lowest 30 year jumbo refinance rates in our New Jersey database of lenders is much lower at 4.00 percent with zero points.
15 year jumbo mortgage rates today are averaging 3.80 percent, up from last week’s average 15 year jumbo mortgage rate of 3.74 percent. The best jumbo rates on 15 year mortgages in our database are at 3.375 percent with 1.756 points. The lowest interest rate without points is at 3.625 percent.
Adjustable mortgage rates are mixed this week. 5 year conforming adjustable rates are lower while 5 year jumbo adjustable mortgage rates are higher. The current average 5 year conforming adjustable rate is at 3.44 percent, down from last week’s average 5 year rate of 3.58 percent. Average 5 year jumbo adjustable rates are at 2.90 percent, up from last week’s average adjustable jumbo rate of 2.82 percent.
Checking on 5 year conforming rates at MonitorBankRates.com, the lowest rate is more than 1.00 percent lower than the average at 2.125 percent with 1.596 points. The lowest 5 year refi rates without points is much lower than the average at 2.50 percent. The lowest 5 year jumbo rate is at 2.25 percent with 1.941 points, the lowest rate without points is at 2.625 percent.
Average Mortgage Rates
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