Current Mortgage Rates Running Higher this Week
Current mortgage rates are higher this week because of a stronger than expected CPI report. 30 year mortgage rates hit a new high for 2018 at 4.38 percent, matching a high set in March 2017. The Consumer Price Index Report, released last week, came in stronger than expected at 2.1 percent year-over-year in January.
Forecasts were for a year-over-year increase of 1.9 percent. Inflation running at 2.1 percent is slightly higher than the Federal Reserve's target of 2.00 percent. An inflation rate higher than the Fed's target rate reinforces expectations that the Fed will continue tightening monetary policy.
Tightening monetary policy is the Fed increasing the fed funds rate, which increases Treasury yields and mortgage rates. The Fed is expected to increase rates in March and at least once more in 2018. If inflation continues to run higher than the Fed's target, it will mean even more rate hikes.
Current Mortgage Rates
Current mortgage rates on 30 year loans are at 4.39 percent and could likely increase to 4.50 percent by the end of March. By the end of 2018, 30 year rates could possibly head towards 5.00 percent if the Fed raises rates much more. Last September, 30 year rates were around 3.75 percent.
Today's mortgage rates on 15 year loans are averaging 3.75 percent, an increase from the prior week's average 15 year mortgage rate of 3.68 percent. By the end of next month, 15 year mortgage rates could hit 4.00 percent. Looking towards the end of 2018, 15 year rates could move towards 4.25 percent or even higher.
Mortgage rates today on 30 year jumbo loans are averaging 4.63 percent, an increase from last week's average 30 year jumbo rate of 4.55 percent. 30 year jumbo rates will likely move towards 4.85 percent by the end of next month. 30 year rates could move above 5.00 percent by the end of 2018.
Average 15 year jumbo mortgage rates are at 4.55 percent, up from the previous week's average of 4.48 percent. At the end of March, we could see 15 year jumbo rates around 4.75 percent and around 5.00 percent by the end of 2018.
Make no mistake, mortgage rates have been heading higher and will continue to do so in 2018. If you're thinking refinancing a loan, do it before refinance rates move higher. If you're buying a home, lock in a lower rate now before rates move higher.
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