Average 30 Year Mortgage Rates Decline This Week
15 year mortgage rates today are currently averaging 4.02 percent, down from the previous week's average 15 year mortgage rate of 4.04 percent. The average rate on 15 year mortgage loans is also about .50 percent higher this year.
Current mortgage rates on 5 year adjustable mortgage loans are at 3.73 percent. Average 5 year adjustable rates are up from last week's average of 3.69 percent. 5 year adjustable rates are up about 60 basis points so far this year, higher than longer term rates.
Short term mortgage rates such as 5 year adjustable rates are tied to short term interest rates. Short term interest rates are being forced higher because the Federal Reserve is increasing the fed funds rate. As result, shorter term mortgage rates are rising faster than longer term mortgage rates.
Average Jumbo Mortgage Rates
30 year jumbo mortgage rates are averaging 4.65 percent, down from the previous week's average 30 year jumbo rate of 4.68 percent.
Mortgage rates today on 15 year jumbo loans are averaging 4.54 percent, a decline from the prior week's average 15 year jumbo rate of 4.57 percent.
5 year adjustable jumbo mortgage rates are averaging 4.29 percent. Last week, average 5 year adjustable jumbo rates were slightly higher at 4.31 percent.
The Federal Reserve is expected to increase their key benchmark interest rate, the fed funds rate, at least twice more this year. As a result, the forecast for mortgage rates is higher for the rest of 2018.
There is a good chance the Fed will increase the rate more because inflation is on the rise. The current inflation rate is at 2.00 percent, right at the Fed's target rate of 2.00 percent. If inflation picks up steam and increases beyond 2 percent, we expect rates to move even higher.
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