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Brexit Sends Average 30 Year Mortgage Rates to New Low for 2016

Average 30 year mortgage rates hit a new low in 2016 as a result of the Brexit vote to leave the European Union. 30 year mortgage rates today are averaging 3.48 percent, a sharp decline from last week's average rate of 3.73 percent. 30 year mortgage rates are only 17 basis points above the all-time low of 3.31 percent set in late 2012.

Mortgage lenders lowered mortgage rates to new lows in 2016 because 10 year bond yields hit new lows. When U.K. voters voted to leave the European Union, bond yields tumbled across the globe. In the U.S., 10 year bond yields fell from 1.73 percent down to 1.46 percent overnight.

Near record low mortgage rates will spur home sales and help the summer housing market. Likewise, new low refinance rates will also spur refinancing demand. The Mortgage Bankers Association reported a drop in mortgage applications for the week ending June 24, 2106. Though totalĀ mortgage applications dropped 2.6 percent, this survey was before the Brexit vote and the subsequent plunge in rates. Next week's report will show a jump in loan volume for both home purchases and refinances because of the sharp decline in rates. Ā 

Average 3o year rates are at 3.48 percent today but there are lenders already offering 30 year rates below the all-time low of 3.31 percent. The lowest 30 year refinance rate in our rate database is at 3.00 percent with 1.10 points. The lowest rate available without points is at 3.37 percent, still below the current average.

Average 15 year mortgage rates are also lower this week but by a smaller amount. The current average 15 year mortgage rate is at 2.78 percent, down from the prior week's average of 2.83 percent. The lowest 15 year rate in our database is at 2.375 percent with 1 mortgage point and at 2.625 percent with no mortgage points. You can check on current mortgage rates in your state by searching our rate database at MortgageRates.MonitorBankRates.com.







 
Author: Brian McKay
July 1st, 2016