Drop in Mortgage Rates Causes Mortgage Applications to Surge 14 Percent
Last week the Federal Reserve decided to stand pat on interest rates and as a result, bond yields and mortgage rates dropped. Average 30 year mortgage rates are down to 3.78 percent this week, a decline from last week's average rate of 3.89 percent.
Lower mortgage rates have caused demand for home loans to increase 14 percent according to the Mortgage Bankers Association. Refinance applications rose 18 percent week-to-week, while home purchase applications increased 9 percent.
The MBA's chief economist said, "The increase in purchase activity was solely driven by applications for conventional purchase loans, which reached the highest level since June 2013.”
While average 30 year conforming mortgage rates are at 3.78 percent this week, there are many lenders quoting rates below the average. The lowest rate available right now in our rate database is at 3.50 percent with 2 mortgage points from Sebonic Financial. The lowest 30 year refinance rate without points is also from Sebonic Financial at 3.75 percent.
15 year mortgage rates are averaging 2.93 percent, a decline from last week's average rate of 2.98 percent. The lowest conforming 15 year rate in our database right now is at 2.65 percent with two points. The lowest 15 year rate without points is also below the average at 2.875 percent.
Average 5 year adjustable rates are at 3.09 percent, down from 3.16 percent last week. The lowest 5 year adjustable refinance rate in the database is at 2.375 percent with 2 points and the lowest rate without points is at 2.625 percent.
Mortgage rates today on 30 year jumbo loans are averaging 4.24 percent, lower than last week's average rate of 4.28 percent. The best 30 year jumbo refinance rate in our database is much lower than the average at 3.625 percent with 1 mortgage point. The lowest rate without points is at 3.75 percent.
Today's mortgage rates on 15 year jumbo loans are averaging 3.80 percent, a decline from the previous week's average of 3.86 percent. The lowest 15 year jumbo rate in our database with points is at 2.99 percent, the lowest without points is at 3.125 percent.
5 year jumbo adjustable rates are averaging 3.65 percent, down from the prior week's average of 3.79 percent. The lowest 5 year jumbo adjustable refinance rate in our database is at 2.75 percent with no mortgage points.
Search for a list of lenders quoting mortgage rates in your state by using our database. Most importantly, you don't have to provide any personal information to see a list of rates at MonitorBankRates.com/Mortgages.
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