15 Year Mortgage Rates Fall to 3.27%, Best Rates as Low as 2.875%

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Average 15 year mortgage rates today are lower, following 10 year U.S. Treasury yields lower. Mortgage rates have fallen in 2014, just the opposite of what was expected to happen. When the Federal Reserve embarked on slowing their monthly buys of mortgage-backed securities (MBS) and long term U.S. Treasuries, interest rates were expected to move higher.

The Fed was buying $85 billion a month in these securities last year and has lowered the monthly amount down to $35 billion a month in July. The Fed also announced they would cease these purchases in October. So why haven't bond rates and mortgage rates moved higher in 2014?
Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
in 06101, 0, 740    Sort by:
Lender
APR
Rate
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Notes
 
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
4.500%
4.500%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
08/23/2019
at 0.000 pts
45 day lock rate
Est payment: $1,521
Fees in APR: None
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
4.500%
4.500%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
08/23/2019
at 0.000 pts
45 day lock rate
Est payment: $1,521
Fees in APR: None
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from AimLoan.com
AimLoan.com
https:https://mortgagerates.icanbuy.com/images/lenderslogos/112335.gif
300000
Purchase
3.750%
3.750%
USD
AimLoan.com Logo
NMLS # 2890
State Lic # 13256
08/23/2019
at -0.250 pts
30 day lock rate
Est payment: $1,390
Fees in APR: ($663)
Internet direct lender since 1998. View rates & fees, apply/lock online 24/7
 

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.






The reason being that China has played a big roll in keeping bond yields low and indirectly keeping mortgage rates low. China has increased its purchasing of  U.S. bonds this year at the fastest pace in more than 30 years. When there is more demand for U.S. bonds, bond prices move higher and bond yields move lower.

Lenders tie mortgage rates to bond yields, so when bond yields move lower, mortgage rates also move lower. There is an interesting article in the Wall Street Journal that shows how much China has been buying this year. You can read the article here: China Plays a Big Role as U.S. Treasury Yields Fall.

Average Mortgage Rates Today July 21, 2014

  • Conforming 30 Year Rates 4.27%

  • Conforming 15 Year Rates 3.27%

  • Conforming 5/1 ARM Rates 3.47%

  • Jumbo 30 Year Rates 4.57%

  • Jumbo 15 Year Rates 3.71%

  • Jumbo 5/1 ARM Rates 3.51%


Lowest Mortgage Rates Available Today July 21, 2014

  • Conforming 30 Year Rate 3.265%

  • Conforming 15 Year Rate 2.875%

  • Conforming 5/1 Rate 2.625%

  • Jumbo 30 Year Rate 3.875%

  • Jumbo 15 Year Rate 3.375%

  • Jumbo 5/1 ARM Rate 2.625%


You can view lender's rates in your state by searching our tables here: Current Mortgage Rates.
 
Author: Brian McKay
July 21st, 2014