Average 30 Year Mortgage Rates Today Remain Under 4.00%
mortgage rates today are averaging 3.96 percent, down from last week's average 30 year rate of 3.97 percent. This is the second consecutive week average 30 year mortgage rates remained under 4.00 percent. We do expect rates to increase because 10 year Treasury yields are up 14 basis points since Monday.
July employment numbers, scheduled to be released this Friday, could have a big impact on bond yields and mortgage rates. 220,000 jobs are expected to have been created in July and the unemployment rate to remain at 5.3 percent. A stronger number of jobs created would send interest rates higher.
A weak number won't send rates lower because the Fed is expected to increase the fed funds rate in the near future. The Fed is schedule to meet in September and will probably increase the fed funds rate 0.25 percent. An increase in the fed funds rate, will send bond yields higher, which in turn will send mortgage rates higher.
The possibility of higher mortgage rates has already boosted loan demand. The Mortgage Bankers Association's Weekly Application Survey showed mortgage applications rose 4.7 percent for week ending July 31.
Refinance applications climbed 6 percent for the week, while applications for home purchase rose 3 percent. Refinance application loan volume is 8 percent higher than the year ago levels. Home purchase applications are up 23 percent year-over-year.
Mortgage rates are headed higher later this year but the increase will be smaller than expected. 30 year mortgage rates were forecast to be around 5.00 percent by the end of 2015. A more likely forecast is for 30 year rates to remain under 4.50 percent.
Conforming Mortgage Rates
30 year conforming mortgage rates are averaging 3.96 percent, down 1 basis point from last week's average of 3.97 percent.
Today's 15 year conforming rates are averaging 3.04 percent, down from last week's average 15 year rate of 3.05 percent.
Jumbo Mortgage Rates
Current 30 year jumbo mortgage rates bucked the trend and are higher this week. Average 30 year jumbo rates are at 4.33 percent, up from last week's average of 4.28 percent.
15 year jumbo rates are averaging 3.89 percent, unchanged from the previous week's average 15 year rate.
Adjustable Mortgage Rates
5 year conventional adjustable mortgage rates are averaging 3.23 percent, up sharply from last week's average 5 year rate of 3.06 percent.
5 year jumbo adjustable rates are averaging 3.40 percent, down from last week's average of 3.52 percent.
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