30 Year Mortgage Rates Approaching 4.00 Percent

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Average 30 year mortgage rates are higher this week and are hovering just below 4.00 percent. Mortgage rates are higher this week because long term interest rates are increasing. 30 year mortgage rates are not the only rates moving higher this week.

Average mortgage rates were up across the board. 15 year rates are higher this week and short term adjustable mortgage rates are also higher. Long term interest rates and short term interest rates in general are moving higher. We expect the uptrend of higher rates to continue throughout 2018.
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Loan Amt Points FICO % Down
  
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in 06101, 2, 740    Sort by:
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PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.291%
4.125%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
10/16/2019
at 2.000 pts
45 day lock rate
Est payment: $1,454
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.291%
4.125%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
10/16/2019
at 2.000 pts
45 day lock rate
Est payment: $1,454
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from New American Funding
New American Funding
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111741.gif
300000
Purchase
3.524%
3.375%
USD
New American Funding Logo
NMLS # 6606
10/16/2019
at 1.875 pts
30 day lock rate
Est payment: $1,327
Fees in APR: $5,625
Direct lender specializing in helping you save money on your home loan.
 

Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. Click here for more information on rates and product details.





Average 30 Year Mortgage RatesAverage 30 Year Mortgage Rates


30 year rates are currently averaging 3.95 percent, up five basis points from last week's average rate. Although the trend for mortgage rates is higher in the coming year, rates won't increase that much from current levels.

The Mortgage Bankers Association's forecast for 30 year rates to be around 4.50 percent by the second quarter of 2018. By the end of 2018, average 30 year rates are forecast to be only at 4.80 percent.

These forecasts were released in November and will likely be increased in the next forecast because Republicans in the House and Senate voted to cut taxes, which will likely lead to higher inflation and higher interest rates.

Average 15 Year Mortgage Rates


15 year mortgage rates today are averaging 3.36 percent, an increase over last week's average 15 year rates of 3.31 percent. Back in late September, average 15 year rates were at 3.00 percent, only 36 basis points lower than the current level.

As you can see, the uptick for 15 year rates has also been gradual. MonitorBankRates.com forecast for 15 year rates by the 2nd quarter of 2018 is at 3.75 percent. By the end of 2018, we forecast 15 year rates to be just under the 4.00 percent level.

Average 5 Year Adjustable Mortgage Rates


The current average rate on 5 year adjustable mortgage loans is at 3.54 percent, up from the prior week's average 5 year adjustable rate of 3.47 percent. Average 5 year adjustable rates are only 30 basis points higher than the average rate in late September.

Looking into 2018, short term adjustable rates will have a bigger gain than long term rates. The reason being is the Federal Reserve is expected to increase their key benchmark interest rate at least twice in 2018. These increases will force short term adjustable mortgage rates higher.

By the second quarter of 2018, average 5 year adjustable rates will probably be around 4.00 percent. By the end of 2018, 5 year adjustable rates will move towards 4.50 percent.
 
Author: Brian McKay
December 13th, 2017