Average Mortgage Rates Mixed Today but Heading Lower in the Coming Months

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Average current mortgage rates moved higher since the FOMC announced another around of quantitative easing. Mortgage rates are higher because Treasury yields increased as investors sold Treasuries (yields move in the opposite direction) to invest in riskier assets like stocks and commodities. During the first two rounds of easing since 2009 stock prices are up 100% so investors believe another round of easing will send stocks up further. When the Fed begins QE3 bond yields and mortgage rates will fall in the coming months.

In QE3 the Fed will buy $40 billion a month in agency mortgage backed securities (MBS) to drive down long term interest rates more generally, but also on mortgage interest rates specifically, providing more support to the housing sector by encouraging home purchases and home loan refinancing. The Fed also said they will extent their highly accommodating stance of keeping the Fed funds rate in a targeted range of zero percent to one quarter percent from the end of 2014 to the middle of 2015.



Here is a video of the press conference by Fed Chairman, Ben Bernanke:



Mortgage rates today on 30 year conforming mortgage loans are averaging 3.52 percent, an increase from an average 30 year mortgage rate of 3.51 percent. 30 year conventional mortgage rates are just above a record low of 3.47 percent set in late July. Average 30 year mortgage interest rates will break though the record low and drop as low as 3.00 percent with 3.25 percent because of QE3.

Today's mortgage rates on 30 year conventional loans can be found below the average rate. There are many lenders offering 30 year refinance rates below the average on our rate tables. Right now on our 30 year refinance rate list for the state of Connecticut, LenderRefi is offering 30 year mortgage refinance rates at 3.15 percent with 0.876 points. Pleasant Valley Home Mortgage is offering 30 year refinance mortgage rates at 3.375 percent with zero points.

Mortgage rates currently on 15 year conforming home loans are averaging 2.93 percent, an increase from an average 15 year mortgage rate of 2.88 percent. Average 15 year mortgage rates should fall to the 2.50 percent to 2.60 percent range if QE3 is successful in driving down rates.

There are many lenders offering 15 year refinance rates today below the average, well below the average if you're willing to pay points. Right now on our 15 year refi rates list for the state of Georgia, Roundpoint Mortgage and Amerisave are both offering 15 year rates at 2.50 percent with points. The lowest current refinance rates for 15 year loans without points is 2.75 percent.

Today's mortgage rates on 30 year jumbo loans are averaging 4.17 percent, down from an average 30 year jumbo mortgage rate of 4.19 percent. I believe 30 year jumbo mortgage rates will fall below 4.00 percent when QE3 is in full swing. Right now you can find today's refinance rates on jumbo loans on our rate list for California at 3.625 percent with points and at 4.00 percent with no points.

Mortgage rates current on 15 year jumbo home loans are averaging 3.35 percent, up from an average 15 year jumbo mortgage rates of 3.33 percent. Before the end of the year we might possibly see average 15 year jumbo mortgage rates fall to 3.00 percent. You can already find 15 year jumbo mortgage rates below the average of 3.35 percent. Today's refinance rates on 15 year jumbo loans on our rate list of the state of Texas can be found as low as 3.00 percent with no points.

Average conforming 5 year adjustable mortgage rates are currently at 2.95 percent, an increase from an average 5 year adjustable mortgage rate of 2.89 percent. Right now on our 5 year adjustable refinance rates list for the state of Florida, Roundpoint Mortgage is offering 5 year adjustable refi rates at 1.875 percent with 2 points.

Current mortgage rates today on 5 year jumbo mortgage loans are averaging 2.84 percent, unchanged from last week's average 5 year jumbo adjustable mortgage rate. Right now on our 5 year jumbo adjustable refinance rates list for the state of New Jersey Diamond Funding is offering 5 year jumbo refinance rates at 2.375 percent with 1 mortgage point. Third Federal Savings and Loan is offering 5 year jumbo refinancing rates at 2.44 percent with no points.
 
Author: Brian McKay
September 17th, 2012